EUR/USD Mid-Session Technical Analysis for February 12, 2016

The EUR/USD is trading lower at the mid-session. The market posted a lower-low, making 1.1375 a new minor top.

The main trend is up according to the daily swing chart. It isn’t in danger of posting a change in trend nor is it in a position to post a closing price reversal top at this time although it is in the window of time to do so.

Based on the current price at 1.1282, the direction of the EUR/USD into the close is likely to be determined by trader reaction to the long-term downtrending angle at 1.1284. Treat this angle like a pivot.

A sustained move over 1.1284 will signal the presence of buyers. This may generate enough upside momentum to challenge yesterday’s high at 1.1375. This is followed by the next downtrending angle at 1.1389. This is the last potential resistance angle before the 1.1494 main top.

A sustained move under 1.1284 will indicate the presence of sellers. The daily chart indicates there is plenty of room to the downside with 1.1129 the next major target. The market is unlikely to reach this level today, given the current volatility.

Watch the price action and read the order flow at 1.1284 the rest of the day. Trader reaction to this angle will tell us if the bulls or the bears are in control.  A strong stock market rally could put pressure on the Euro.