EUR/USD Mid-Session Technical Analysis for September 9, 2020

The Euro is trading lower against the U.S. Dollar on Wednesday as the profit-taking and position-squaring continues ahead of Thursday’s European Central Bank (ECB) policy announcements.

The single-currency has lost about 2% since posting a 28-month high above 1.20 on September 1, spurred lower by comments from ECB chief economist Philp Lane who said the exchange rate mattered to monetary policy.

At 10:54 GMT, the EUR/USD is trading 1.1755, down 0.0019 or -0.16%.

Meanwhile, a consensus of investors thinks any hint of concern at the Euro’s rise, or that low inflation will require ultra-easy policy for a very long time could whack the Euro lower again and boost the U.S. Dollar.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. The main trend will change to down on a trade through the last main bottom at 1.1754. A trade through 1.2011 signals a resumption of the uptrend.

The minor trend is down. This is controlling the momentum.

The short-term range is 1.1754 to 1.2011. Its retracement zone at 1.1826 to 1.1861 is resistance. Trading on the weak side of this zone is adding to the downside momentum.

The main downside target is the longer-term retracement zone at 1.1691 to 1.1616. Since this zone represents value, it is a valid downside target. Look for buyers to return on a test of this zone.

Daily Swing Chart Technical forecast

Based on the early price action, the direction of the EUR/USD the rest of the session could be determined by trader reaction to the last main bottom at 1.1754. This was the low on August 21 and is today’s intraday low.

Bearish Scenario

A trade through 1.1754 will change the main trend to down. If this move creates enough downside momentum then look for a possible acceleration into the next main bottom at 1.1711, followed closely by the main 50% level at 1.1691.

Bullish Scenario

A sustained move over 1.1754 will signal the presence of buyers. They could be defending against a change in trend. If this creates enough upside momentum then look for a possible rally into the short-term Fibonacci level at 1.1826.