EUR/USD Mid-Session Technical Analysis for August 21, 2018

The Euro is trading higher shortly after the U.S. opening. The single-currency has been clawing back last week’s losses ever since concerns over the currency crisis in Turkey subsided. Lower Treasury yields and increased demand for risky currencies also helped support the currency.

At 1135 GMT, the EUR/USD is trading 1.1525, up 0.0039 or +0.34%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the August 15 closing price reversal bottom at 1.1301.

A trade through 1.1628 will change the main trend to up. A move through 1.1301 will negate the reversal bottom and signal a resumption of the downtrend.

The short-term range is 1.1628 to 1.1301. Today’s rally took out its retracement zone at 1.1465 to 1.1503, making this area new support.

The main range is 1.1747 to 1.1301. Its retracement zone at 1.1524 to 1.1577 is currently being tested. Since the main trend is down, sellers may come in on a test of this zone to slow down the upside momentum, or to stop the rally.

Daily Technical Forecast

Based on the current price at 1.1525 and the earlier price action, the direction of the EUR/USD the rest of the day could be determined by trader reaction to the 50% level at 1.1524.

A sustained move over 1.1524 will indicate the buying is getting stronger. This could lead to an extension of the rally into the Fibonacci level at 1.1577, followed by the downtrending Gann angle at 1.1597. Taking out this angle could lead to a test of the last main top at 1.1628.

A sustained move under 1.1524 will signal the presence of sellers. This could lead to a labored break with targets coming in at 1.1503, 1.1465 and 1.1461. The selling pressure could increase if sellers take out 1.1461 with conviction.