EUR/USD Mid-Session Technical Analysis for August 30, 2016

The EUR/USD is trading lower at the mid-session in a light trading session. There are no major economic releases today with most investors looking ahead to Friday’s U.S. Non-Farm Payrolls report rather than behind to Fed Chair Janet Yellen’s hawkish comments on Friday.

The main trend is down according to the daily swing chart.

The main range is 1.1426 to 1.0910. Its 50% level or pivot is 1.1168. The short-term range is 1.0951 to 1.1366. Its 50% level or pivot is 1.1159. These two 50% levels form a stronger support cluster that is currently being straddled. Trader reaction to this zone will set the tone for the day.

A sustained move over 1.1168 will indicate the presence of buyers. If volume begins to pick up we could see a push into an uptrending angle at 1.1170. Overtaking this angle will put the EUR/USD in a strong position.

A sustained move under 1.1159 will signal the presence of sellers. The first target is a long-term uptrending angle at 1.1145. This angle is also a trigger point for an acceleration into a short-term Fibonacci level at 1.1110.

Volume is light and volatility is expected to be below average today because the major players are sitting on the sidelines ahead of the U.S. jobs report on Friday. We expect to see a possible two-sided trade on both side of the pivot zone at 1.1168 to 1.1159.

Look for an upside bias to develop on a sustained move over 1.1168 and a downside bias on a sustained move under 1.1159.