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EUR/USD Mid-Session Technical Analysis for May 2, 2016

By:
James Hyerczyk
Published: May 2, 2016, 10:35 UTC

The EUR/USD is up at the mid-session. The rally is a continuation of the move which began last week. The main trend is up according to the daily swing

EUR/USD Mid-Session Technical Analysis for May 2, 2016

The EUR/USD is up at the mid-session. The rally is a continuation of the move which began last week.

Daily EUR/USD

The main trend is up according to the daily swing chart. The main trend turned up last week on a trade through 1.1398. The uptrend was reaffirmed earlier today when buyers took out the April 12 main top at 1.1464.

Based on the current price at 1.1490, the direction of the EUR/USD the rest of the session will be determined by trader reaction to price cluster formed by the long-term downtrending angle at 1.1492 and the October 15, 2015 main top at 1.1494.

The inability to overcome 1.1494 and a subsequent break under 1.1492 will signal the presence of sellers. This could lead to a break back into the nearest support angle at 1.1414.

Overcoming 1.1494 with conviction will put the EUR/USD in a bullish position. The daily chart indicates there is plenty of room to the upside over this level with the next major target another long-term downtrending angle at 1.1602. We could reach this level between May 6 and May 9 if the market continues to gain at least .004 per day.

Today is the fifth day up from the most recent bottom at 1.1214. This means there are two more days before we reach the “window of time” that could help put in a short-term top.

Look for the bullish tone to continue on a sustained move over 1.1494 and a bearish tone to develop on a sustained move under 1.1492.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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