Yahoo Finance EUR/USD Mid-Session Technical Analysis for January 18, 2018
The EUR/USD is trading higher shortly before the U.S. opening. The Forex pair traded lower early in the session, but mounted an intra-day comeback after a successful test of a major 50% level. The direction of the market the rest of the session will be largely influenced by the movement in U.S. Treasury yields and the outcome of several key economic reports.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of a closing price reversal top on Wednesday. The chart pattern was confirmed earlier today without much follow-through selling.
The closing price reversal top doesn’t mean the trend is changing to down. It often leads to a 2 to 3 day correction of about 50% of the last rally.
A trade through 1.2323 will negate the chart pattern and signal a resumption of the uptrend.
The major long-term 50% level is 1.2166. This price level provided support earlier today.
The short-term range is 1.1915 to 1.2323. Its retracement zone at 1.2119 to 1.2071 is the primary downside target. Since the main trend is up, buyers are likely to show up on a test of this zone.
Daily Technical Forecast
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the 50% level at 1.2166.
A sustained move over 1.2166 will indicate the presence of buyers. Overcoming a steep uptrending Gann angle at 1.2283 will indicate the buying is getting stronger. The next target is a steep downtrending Gann angle at 1.2243. This angle is providing support today.
Overtaking 1.2243 could drive prices into additional downtrending Gann angles at 1.2283, 1.2303 and 1.2311. The latter is the last potential resistance angle before the 1.2323 main top.
A sustained move under 1.2166 will signal the presence of sellers. Taking out the long-term uptrending Gann angle at 1.2156 could trigger an acceleration to the downside with the next target the short-term support zone at 1.2119 to 1.2071.
This article was originally posted on FX Empire
More From FXEMPIRE:
Technical Update For USD/CHF, GBP/CHF, NZD/CHF & CAD/CHF: 18.01.2018
E-mini S&P 500 Index (ES) Futures Technical Analysis – January 18, 2018 Forecast
E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 18, 2018 Forecast
AUD/USD Forex Technical Analysis – January 18, 2018 Forecast
Rebound in Cryptocurrencies Prices Early Today, Ripple Surges over 50%
