EUR/USD Mid-Session Technical Analysis for February 9, 2016

The EUR/USD is trading higher at the mid-session, but the limited price action suggests investor indecision. This usually goes with impending volatility. Traders are still trying to make up their minds about the pace of the Fed rate hikes.

Investors may get some clarity about the Fed’s intentions on Wednesday when Chair Janet Yellen testifies before Congress.

Technically, the EUR/USD has been relatively range bound the last four days since it crossed to the strong side of a major retracement zone.

Based on the current price at 1.1214, the first upside objective is the closing price reversal top at 1.1243. Taking out this top will negate the chart pattern and could trigger an acceleration into the nearest downtrending angle at 1.1292. The daily chart opens up to the upside over this angle with the next target angle coming in at 1.1393. This is the last potential resistance angle before the October 15, 2015 main top at 1.1494.

The inability to overcome 1.1243 will signal the presence of sellers. This may generate enough downside momentum to break the market into the major Fibonacci level at 1.1129. Crossing to the weak side of this level will indicate the selling is getting stronger with potential targets at 1.1089 and 1.1037.

Watch the price action and read the order flow at 1.1243 today. Trader reaction to this price will likely determine the direction of the EUR/USD into the close.