Yahoo Finance EUR/USD Mid-Session Technical Analysis for October 14, 2019
The dollar rose against the Euro on Monday as safe-haven buyers returned after traders turned cautious about the progress being made toward an end to the U.S.-China trade dispute.
On Friday, the Euro was boosted by optimism that a trade deal could be reached when President Trump announced the two economic powerhouses had agreed to a ‘Phase One’ trade deal.
However, reports from China and Bloomberg News said China wants another round of talks with the U.S. before signing what President Donald Trump called a “very substantial phase one deal.” Bloomberg News first reported the news and said in its report that China also wants the U.S. to scrap a tariff hike scheduled for December.
With uncertainty over the deal being raised, investors turned to the safe-haven dollar for protection, leading to the weaker EUR/Usd.
At 13:25 GMT, the EUR/USD is trading 1.1023, down 0.0013 or -0.12%.
Daily Technical Analysis
The main trend is down according to the daily swing chart, however, momentum is trending higher. The main trend will change to up on a trade through 1.1110. A move through 1.0879 will change the main trend to down.
The minor trend is up. This is generating the upside momentum. A trade through Friday’s high at 1.1063 will signal a resumption of the minor trend. A trade through 1.0941 will change the minor trend to down and shift momentum back to the downside.
The main range is 1.1164 to 1.0879. Its retracement zone at 1.1022 to 1.1055 is currently being tested. This zone is potential resistance. It is also controlling the near-term direction of the EUR/USD.
The short-term range is 1.1110 to 1.0879. Its 50% level or pivot at 1.0995 is potential support.
Daily Technical Forecast
Based on the early price action and the current price at 1.1023, 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 1.1022.
Bullish Scenario
A sustained move over 1.1022 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential rally into a resistance cluster at 1.1055 to 1.1059.
Overtaking 1.1059 will indicate the buying is getting stronger with the next target angle coming in at 1.1077.
Bearish Scenario
A sustained move under 1.1022 will signal the presence of sellers. This could trigger a break into the 50% level at 1.0995, followed by an uptrending Gann angle at 1.0969.
This article was originally posted on FX Empire
