EUR/USD Mid-Session Technical Analysis for April 29, 2016

The EUR/USD is trading higher at the mid-session. Earlier in the session, the Forex pair posted a volatile two-sided trade, first surging to 1.1414 then dropping to 1.1369 before recovering to 1.1389. The catalyst behind the move was mixed Euro Zone economic data showing the economy growing solidly and unemployment falling slightly while consumer prices fell into deflation territory.

Technically, the main trend turned up on the daily chart when the last swing top at 1.1398 was taken out.

The main range is 1.1464 to 1.1214. Its retracement zone is 1.1339 to 1.1368. The market is currently trading on the strong side of this retracement zone, giving it an upside bias.

Based on the current price at 1.1392, the direction of the market the rest of the day is likely to be determined by trader reaction to the downtrending angle at 1.1399 and the uptrending angle at 1.1374.

A sustained move over 1.1399 will indicate that buyers are still coming in to support the rally. This could create enough upside momentum to challenge the next downtrending angle at 1.1432. This is the last potential resistance angle before the 1.1464 main top.

A sustained move under 1.1374 will signal the presence of sellers. The first downside target under this angle is the Fibonacci level at 1.1368. This is followed by a 50% level at 1.1339.

Watch the price action at 1.1432 the rest of the session. Trader reaction to this angle should set the tone for the day. Look for an upside bias to develop on a sustained move over 1.1399 and a downside bias on a sustained move under 1.1374.