The Euro is edging higher against the U.S. Dollar on Tuesday despite rising worries about a second wave of COVID-19 infections, as investors sat on the sidelines ahead of next week’s U.S. election. Trading volume is light as is overall foreign exchange market activity, with price moves on Tuesday limited.
At 12:48 GMT, the EUR/USD is trading 1.1825, up 0.0016 or +0.13%.
In other news, Euro Zone bond yields held their ground on Tuesday as the continued rise in coronavirus cases and the lack of progress on U.S. stimulus kept investors cautious before Thursday’s European Central Bank (ECB) meeting.
At the ECB meeting, the bank is not expected to change its policy, but investors will watch for hints on how likely it is to add to its bond purchases in December.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.1881 will reaffirm the uptrend. The main trend will change to down on a trade through 1.1688.
The short-term range is 1.2011 to 1.1612. Its retracement zone at 1.1811 to 1.1859 is providing resistance. This zone is also controlling the near-term direction of the EUR/USD.
The minor range is 1.1688 to 1.1881. Its retracement zone at 1.1785 to 1.1762 is potential support.
Daily Swing Chart Technical Forecast
Given the early price action, the direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to the short-term 50% level at 1.1811.
A sustained move over 1.1811 will indicate the presence of buyers. If this creates enough upside momentum then look for a possible surge into the short-term Fibonacci level at 1.1859, followed by the main top at 1.1881.
A sustained move under 1.1811 will signal the presence of sellers. This could trigger a break into the support cluster at 1.1787 to 1.1785, followed by the Fibonacci level at 1.1762.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire