EUR/USD Mid-Session Technical Analysis for September 26, 2019

The Euro is trading higher against the U.S. Dollar on Thursday after hitting a 28-month low earlier in the session. Optimism over a trade deal between the United States and China initially drove the Euro lower. However, the Euro recovered following the release of the whistleblower complaint that alleges Trump abused power to influence 2020 election.

Today’s price action indicates the likelihood of a choppy, two-sided trade.

At 14:55 GMT, the EUR/USD is trading 1.0939, down 0.0006 or -0.05%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when the selling took out the two previous main bottoms at 1.0927 and 1.0926.

The EUR/USD is down nine sessions from its last main top which puts it in the window of time for a potentially bullish closing price reversal bottom.

Daily Technical Forecast

Based on the early price action and the current price at 1.0939, the direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 1.0930.

Bearish Scenario

A sustained move under 1.0930 will indicate the presence of sellers. If this move creates enough downside momentum, we could see an eventual steep break into the May 11, 2017 main bottom at 1.0838.

Bullish Scenario

Holding above 1.0930 will signal the presence of buyers, but that’s all. It won’t mean the trend is changing.

Turning higher for the session on a move over 1.0944 will put the EUR/USD in a position to post a potentially bullish closing price reversal bottom. If confirmed, this move could lead to a 2 to 3 day counter-trend rally.