EUR/USD Mid-Session Technical Analysis for August 11, 2020
The Euro is trading higher against the U.S. Dollar on Tuesday, bolstered by a report showing investor sentiment in Germany improved more than expected in August. The ZEW economic survey of economic sentiment rose to 71.5 from 59.3 points the previous month, far exceeding a forecast for 58.0 in a Reuters poll of economists.
At 12:34 GMT, the EUR/USD is trading 1.1791, up 0.0054 or +0.46%.
In the U.S on Tuesday, Core PPI jumped 0.5% versus an estimate of 0.1%. PPI rose 0.6% versus 0.3%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.1916 will signal a resumption of the uptrend. The main trend will change to down on a move through 1.1185, which makes its safe for now.
The minor trend is also up. The minor trend changes to down on a trade through 1.1722. This will shift momentum to the downside. A trade through 1.1696 will confirm the shift.
The minor range is 1.1696 to 1.1916. Its 50% level at 1.1806 is resistance. Trader reaction to a test of this level could determine whether the market continues to head into 1.1916, or whether there is enough short-term selling pressure to form a potentially bearish secondary lower top.
The short-term range is 1.1371 to 1.1916. If the minor trend changes to down then, look for the selling to extend into 1.1644 to 1.1579.
Daily Swing Chart Technical Forecast
Based on the early price action and the current price at 1.1791, the direction of the EUR/USD the rest of the session on Tuesday should be determined by trader reaction to 1.1806.
Bullish Scenario
A sustained move over 1.1806 will indicate the presence of buyers. The first target is 1.1819. Overtaking this level will indicate the buying is getting stronger.
Bearish Scenario
A sustained move under 1.1806 will signal the presence of sellers. They are trying to form a secondary lower top. This could lead to a retest of the minor bottoms at 1.1722 and 1.1696. If they fail then momentum will shift to the downside and the EUR/USD is likely to continue into 1.1644 to 1.1579.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
