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EUR/USD Mid-Session Technical Analysis for December 3, 2019

James Hyerczyk

The Euro is trading nearly flat against the U.S. Dollar on Tuesday after President Trump on Monday said his administration would impose tariffs on metal imports from Argentina and Brazil and likely would impose more on a range of French goods. President Trump also suggested he may want to delay a trade deal with China until after the 2020 presidential election.

At 17:30 GMT, the EUR/USD is trading 1.1085, up 0.0007 or +0.06%.

Daily EUR/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has shifted to the upside with the formation of the closing price reversal bottom on November 29 at 1.0981 and its subsequent confirmation.

A trade through 1.1097 will change the main trend to up. A move through 1.0981 will signal a resumption of the downtrend.

The main range is 1.0879 to 1.1179. Its retracement zone at 1.1029 to 1.0994 is support. This area stopped the selling last week, allowing a support base to form.

The short-term range is 1.1176 to 1.0981. Its retracement zone at 1.1079 to 1.1102 is potential resistance. This zone is currently being tested.

Daily Technical Forecast

Based on the early price action and the current price at 1.1081, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the short-term 50% level at 1.1079.

Bullish Scenario

A sustained move over 1.1079 will indicate the presence of buyers. The first upside targets are the main top at 1.1097 and the short-term Fibonacci level at 1.1102. Taking out 1.1102 could trigger a further rally into a downtrending Gann angle at 1.1119.

Bearish Scenario

A sustained move under 1.1079 will signal the presence of sellers. The first downside target is the downtrending Gann angle at 1.1061. This is also a potential trigger point for an acceleration to the downside.

Side Notes

The short-term retracement zone is controlling the direction to the EUR/USD on Tuesday. Look for a bullish tone to develop on a sustained move over 1.1102 and a bearish tone to develop under 1.1079.

 

This article was originally posted on FX Empire

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