The Euro is trading higher against the U.S. Dollar on Monday after plowing to its highest level since September 2018 earlier in the session. The dollar is being weakened by deteriorating U.S.-China relations and domestic economic concerns as U.S. COVID-19 infections slowed no sign of slowing.
The Euro began is current ascent after European Union leaders agreed to a 750 billion-Euro fiscal stimulus plan last week. But European Central Bank board member Fabio Panetta warned that the danger to the Euro Zone economy is not over yet.
At 11:39 GMT, the EUR/USD is trading 1.1727, up 0.0071 or +0.61%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out Friday’s high. The nearest main bottom is 1.1185 so the uptrend should remain intact over the near-term. The only concern for bullish traders should be the closing price reversal top. This chart pattern won’t change the trend to down, but it could trigger the start of a 2 to 3 correction.
The minor trend is also up. A trade through 1.1371 changes the minor trend to down. This will also shift momentum to the downside.
Daily Technical Forecast
Given the prolonged move up in terms of price and time, our only concern is the closing price reversal top. Based on this assessment, the direction of the EUR/USD the rest of the session on Monday will be determined by trader reaction to Friday’s close at 1.1655.
A sustained move over 1.1655 will indicate the presence of buyers. If the current upside momentum continues then look for an eventual test of the September 24, 2018 main top at 1.1816.
A sustained move under 1.1655 will signal the presence of sellers. If confirmed then look for the start of a 2 to 3 day correction. The first downside target is an uptrending Gann angle moving at a rate of 0.0020 per day. This angle is at 1.1545 on Monday.
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