EUR/USD Mid-Session Technical Analysis for January 27, 2020

The Euro is under pressure against the U.S. Dollar on Monday. Some of the selling pressure is related to last week’s dovish comments from the European Central Bank (ECB). Some is being fueled by the weaker than expected Ifo Institute report that showed German business morale deteriorated unexpectedly in January.

At 14:57 GMT, the EUR/USD is trading 1.1018, down 0.0008 or -0.07%.

The German economy will likely grow by 0.2% in the January to March period after probably expanding by 0.1% in the fourth quarter as the industrial sector slowly emerges from a crisis, an economist at the Ifo Institute said on Monday.

Daily EUR/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. The next downside target is the main bottom at 1.0981. Taking out 1.1173 will change the main trend to up. This is highly unlikely. The only pattern that could indicate the presence of buyers will be a closing price reversal bottom.

The main range is 1.0879 to 1.1239. Its retracement zone at 1.1059 to 1.1017 is controlling the near-term direction of the EUR/USD.

Daily Technical Forecast

Based on the early price action and the current price at 1.1018, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to the Fibonacci level at 1.1017 and the downtrending Gann angle at 1.1033.

Bearish Scenario

A sustained move under 1.1017 will indicate the presence of sellers. This could trigger an acceleration into a potential support cluster at 1.0982 to 1.0981. If this fails then look for an acceleration into the next uptrending Gann angle at 1.0930. This is the last potential support angle before the 1.0879 main bottom.

Bullish Scenario

Overtaking 1.1033 will signal the presence of buyers. This could trigger an intraday short-covering rally into the 50% level at 1.1050. Overtaking this level will indicate the buying is getting stronger with potential targets coming in at 1.1084 and 1.1103.

This article was originally posted on FX Empire

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