EUR/USD Mid-Session Technical Analysis for December 11, 2020

The Euro is trading lower against the U.S. Dollar on Friday after posting a solid gain the previous session, when the European Central Bank announced a new round of stimulus in line with market expectations. EU lenders also reached a compromise over a pandemic aid package.

The Euro has soared 15% from three-year lows at the height of the March panic. It has added nearly 2% in two weeks since finally breaking $1.20 after multiple attempts.

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At 14:41 GMT, the EUR/USD is trading 1.2118, down 0.0024 or -0.20%.

Traders are largely shrugging off yesterdays weak U.S. initial jobless claims, and shifting their focus to the lack of progress in coronavirus relief talks. The current stalemate in Congress is helping to underpin the U.S. Dollar.

[fx-image src=/2020/12/Daily-EURUSD-8.jpg data-zoom-target=https://responsive.fxempire.com/cdn/n/n/_fxempire_/2020/12/Daily-EURUSD-8.jpg originalWidth=1920 ratio=1.99]Daily EUR/USDDaily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but momentum has been trending lower since the formation of the closing price reversal top on December 4.

A trade through 1.2178 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through 1.2059.

The minor range is 1.2178 to 1.2059. Its 50% level at 1.2119 is controlling the direction of the EUR/USD today.

The short-term range is 1.1800 to 1.2178. If the main trend changes to down then its retracement zone at 1.1989 to 1.1944 will become the primary downside target.

The main range is 1.1603 to 1.2178. Its retracement zone at 1.1890 to 1.1823 is a value zone and the primary downside target.

[fx-article-ad]Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Friday is likely to be determined by trader reaction to 1.2119.

Bullish Scenario

A sustained move over 1.2119 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible breakout over 1.2178. This is a potential trigger point for an acceleration to the upside with 1.2413 the near-term target.

Bearish Scenario

A sustained move under 1.2119 will signal the presence of sellers. The first downside target is 1.2059. Taking out this level will change the main trend to down. This could trigger a sharp break into the next retracement zone at 1.1989 to 1.1944 over the short-run.

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