EUR/USD Mid-Session Technical Analysis for November 14, 2018

The Euro is trading lower against the U.S. Dollar on Wednesday after an early session rally failed to draw in enough buyers to sustain the rally. The single currency rose on the news the U.K. and European Union have reached a provisional agreement over Brexit. The initial reaction to the news was positive, but the buying dried up and the selling increased once speculators realized there are still obstacles to overcome before the deal is finalized.

At 1048 GMT, the EUR/USD is trading 1.1270, down 0.0020 or -0.18%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1216 will signal a resumption of the downtrend. The main trend will change to up on a move through 1.1501.

The market is currently trading inside a major retracement zone at 1.1447 to 1.1185. This zone is controlling the longer-term direction of the Forex pair.

The short-term range is 1.1501 to 1.1216. Its retracement zone at 1.1359 to 1.1392 is the primary upside target. Since the main trend is down, sellers are likely to come in on the first 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 downtrending Gann angle at 1.1301.

Bullish Scenario

A sustained move over 1.1301 will indicate the presence of buyers. If this move creates enough upside momentum then look for the buying to possibly extend into the 50% level at 1.1359, followed by the 61.8% level at 1.1392 and another downtrending Gann angle at 1.1401.

Bearish Scenario

A sustained move under 1.1301 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into this week’s low at 1.1216, followed closely by the major Fib level at 1.1185.