EUR/USD Mid-Session Technical Analysis for February 19, 2018

The EUR/USD is trading slightly higher shortly after the opening of the U.S. session. Volume is thin due to a U.S. bank holiday. This has already helped create a two-sided trade. In the absence of major economic data, coupled with the bank holiday, traders should look for a choppy trade.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, Friday’s closing price reversal top may be indicating a shift in momentum to down. The chart pattern was confirmed earlier today without much follow-through selling pressure.

A trade through 1.2555 will negate the chart pattern and signal a resumption of the uptrend.

The short-term range is 1.2205 to 1.2555. Its retracement zone at 1.2380 to 1.2339 is the primary downside target. Since the trend is up, we’re likely to see buyers show up on a test of this zone.

The main retracement zone is 1.2235 to 1.2160.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the short-term 50% level at 1.2380.

A sustained move over 1.2380 will indicate the presence of buyers. This could trigger a move into an uptrending Gann angle at 1.2445 and a steep downtrending Gann angle at 1.2475.

A sustained move under 1.2380 will signal the presence of sellers. This is a possible trigger point for a move into the Fibonacci level at 1.2339 and an uptrending Gann angle at 1.2325.