EUR/USD Mid-Session Technical Analysis for April 27, 2020

The Euro is trading higher against the U.S. Dollar at the mid-session on Monday. Some investors were squaring short Euro positions ahead of Thursday’s European Central Bank monetary policy and interest rates decisions. Others were selling U.S. Dollars as traders turned more positive and less averse to risk amid an easing in coronavirus lockdowns around the world.

At 14:00 GMT, the EUR/USD is trading 1.0845, up 0.0021 or +0.20%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside after the confirmation of Friday’s closing price reversal bottom.

A trade through 1.0727 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main trend will change to up on a trade through the last main top at 1.0991.

The minor trend is also down. Taking out 1.0885 and 1.0897 will change the minor trend to up. This will reaffirm the shift in momentum.

The main range is 1.0636 to 1.1147. Its retracement zone at 1.0831 to 1.0892 is resistance. The EUR/USD is currently trading inside this zone. It is also controlling the near-term direction of the Forex pair.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 1.0845, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to the Fibonacci level at 1.0831.

Bullish Scenario

A sustained move over 1.0831 will indicate the presence of buyers. If this move creates enough upside momentum then look for a rally into a series of levels at 1.0885, 1.0892 and 1.0897. The latter is a potential trigger point for an acceleration to the upside with 1.0991 the next likely target over the near-term.

Bearish Scenario

A sustained move under 1.0831 will signal the presence of sellers. This could trigger an intraday break into a minor pivot at 1.0794. If this fails then look for the selling to possibly extend into 1.0727.