Yahoo Finance EUR/USD Mid-Session Technical Analysis for November 20, 2019
The Euro is trading lower against the U.S. Dollar on Wednesday after President Trump threatened to raise tariffs against China, in a move that could escalate the trade war between the two economic powerhouses. Trump’s comment drove down demand for risky assets, while making the greenback an attractive hedge against stock market weakness.
At 13:46 GMT, the EUR/USD is trading 1.1056, down 0.0022 or -0.20%.
China’s condemnation of U.S. legislation aimed at protecting human rights in Hong Kong is also raising concerns over U.S.-China trade relations. On Tuesday, the U.S. Senate passed a measure backing pro-democracy protesters in Hong Kong. Besides the condemnation, China told the U.S. to stop interfering.
In other news, the European Central Bank said on Wednesday that signs of excessive financial risk-taking as well as a slowdown in bank profitability are some of the biggest challenges in the Euro Zone.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom on November 14 at 1.0989.
The main trend will change to up on a trade through 1.1176. A move through 1.0989 will negate the closing price reversal bottom and signal a resumption of the downtrend.
The short-term range is 1.1176 to 1.0989. Its retracement zone at 1.1083 to 1.1104 is providing resistance.
The main range is 1.0879 to 1.1179. Its retracement zone at 1.1029 to 1.0994 is support. This zone stopped the selling at 1.0989.
Daily Technical Forecast
Based on the early price action and the current price at 1.1056, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the long-term uptrending Gann angle at 1.1059.
Bearish Scenario
A sustained move under 1.1059 will indicate the presence of sellers. This is a potential trigger point for an acceleration to the downside with the next target a potential support cluster at 1.1029.
Bullish Scenario
Holding above 1.1059 will signal the presence of buyers. Overcoming the uptrending Gann angle at 1.1069 will indicate the buying is getting stronger. This could trigger a move into 1.1083, followed closely by 1.1090.
This article was originally posted on FX Empire
