Yahoo Finance EUR/USD Mid-Session Technical Analysis for August 20, 2019
The Euro is trading lower against the U.S. Dollar on Tuesday as political uncertainties in Italy are outweighing a dip in U.S. Treasury yields. According to reports, Prime Minister Giuseppe Conte is set to address parliament on Tuesday afternoon (1300 GMT) to defend his record. He might hand in his resignation immediately afterwards or could instead wait for a formal vote to make it clear he is being unseated by the far-right League.
At 12:06 GMT, the EUR/USD is trading 1.1077, down 0.0001 or -0.01%.
Traders are saying the possible success of the no-confidence vote in Italy could drive the EUR/USD sharply lower.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.1066 will signal a resumption of the downtrend. This could lead to a test of the main bottom at 1.1027.
The main trend will change to up on a trade through 1.1250. This is highly unlikely, but the EUR/USD is inside the window of time for a closing price reversal bottom, and in a position to change the minor trend to up.
A move through 1.1114 will change the minor trend to up. This will shift momentum to the upside.
The short-term range is 1.1027 to 1.1250. Its retracement zone at 1.1112 to 1.1139 is resistance. Holding below this zone is helping to generate a downside bias.
Daily Technical Forecast
Based on the early price action and the current price at 1.1077, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1092.
Bearish Scenario
A sustained move under 1.1092 will indicate the presence of sellers. The first target is the minor bottom at 1.1066, followed closely by the uptrending Gann angle at 1.1060. The latter is the last potential support angle before the 1.1027 main bottom.
Bullish Scenario
Overtaking and sustaining a rally over 1.1092 will signal the presence of buyers. If this generates enough upside momentum then look for the rally to possibly extend into 1.1112 to 1.1114. This area is a potential trigger point for an acceleration to the upside with targets coming in at 1.1139 and 1.1150.
This article was originally posted on FX Empire
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