EUR / USD Forex technical analysis – trend changes to decline in trading to 1.2054

The euro fell against the US dollar on Wednesday as the risk of an extended lockdown in Europe to combat the spread of COVID-19 and concerns over the pace of vaccine adoption weighed on the common currency.

European countries are struggling to contain the coronavirus contagion as they fear a new variant of the virus could lead to tighter lockdowns and more economic pain.

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At 21:30 GMT, EUR / USD is trading at 1.2107, down 0.0022 or -0.18%.

The move comes ahead of the European Central Bank meeting on Thursday, which is unlikely to bring about any significant change following the major easing of monetary policy last month.

Daily swing chart technical analysis

Daily swing chart technical analysis

The main trend is up according to the daily swing chart. A trade above 1.2054 will change the main downward trend. Movement through 1.2349 signals a resumption of the uptrend.

The main range is between 1.1800 and 1.2349. The 50% level of 1.2074 supported Tuesday and Wednesday. It controls the short term direction of the EUR / USD.

The short-term range is between 1.2349 and 1.2054. The retracement zone at 1.2202-1.2236 is the primary upside target. Sellers could take a test at this level. You will try to create a secondary lower top.

Short term outlook

Short term outlook

The price movement from Monday to Wednesday indicates the direction of the EUR / USD. The rest of the week will likely be determined by the trader’s reaction on 1.2074.

Bullish scenario

A sustained move above 1.2074 indicates the presence of buyers. If this move is creating enough upward momentum, look for a possible rise from 1.2202 to 1.2236 in the short term.

Bearish scenario

Persistent move below 1.2074 will signal the presence of sellers. If you take out 1.2054 the main trend will change to the downside. This move could trigger another pause in 1.2025. That price is a potential trigger for an acceleration downwards with the next main target being the main low on Nov 23 at 1.1800.

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EUR / USD Forex technical analysis – trend changes to decline in trading to 1.2054
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