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EUR/USD Mid-Session Technical Analysis for January 10, 2020

James Hyerczyk

The Euro is trading lower against the U.S. Dollar on Friday, but clawing back some of its earlier loss after the release of a disappointing U.S. jobs report. The greenback remains underpinned, however, by the dissipating geopolitical tension in the Middle East that is driving up demand for risky assets.

At 14:38 GMT, the EUR/USD is trading 1.1099, down 0.0007 or -0.06%.

According to the U.S. Labor Department, Non-Farm Payrolls increased by only 145,000 while the unemployment rate held steady at 3.5%. Economists were looking for job growth of 160,000. The jobless rate met expectations for staying at a 50-year low. Average Hourly Earnings also came in below expectations, but the prior month was revised higher.


Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 1.1067 will change the main trend to down. A move through 1.1239 will signal a resumption of the uptrend.

The minor trend is down. This shifted momentum to the downside. The minor trend will change to up on a move through 1.1206.

The main retracement zone is 1.1096 to 1.1045. This zone stopped the selling on December 20 at 1.1067. Buyers may be stepping in today with the intraday low coming in at 1.1085.

On the upside, the first target is a 50% level at 1.1146. A long-term Fibonacci level comes in at 1.1185.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to the downtrending Gann angle at 1.1099 and the 50% level at 1.1096.

Bullish Scenario

A sustained move over 1.1099 will indicate the presence of buyers. The next uptrending target angle comes in at 1.1121. Overcoming this angle will indicate the buying is getting stronger. If this move is able to generate enough upside momentum then look for the rally to possibly extend into the 50% level at 1.1146.

Bearish Scenario

A sustained move under 1.1096 will signal the presence of sellers. The next downside target is the main bottom at 1.1067. The trend will change to down on a move through this bottom. This could create the downside momentum needed to challenge the uptrending Gann angle at 1.1051, followed by the Fibonacci level at 1.1045.

This article was originally posted on FX Empire