The EUR/USD is trading lower at the mid-session. Volume and volatility are light but they may pick up with the release of the U.S. preliminary GDP report
The EUR/USD is trading lower at the mid-session. Volume and volatility are light but they may pick up with the release of the U.S. preliminary GDP report at 1230 GMT and after comments from Fed Chair Janet Yellen later in the day.
The main trend is down according to the daily swing chart. A trade through 1.1242 will turn the main trend to up. A move through 1.1126 will signal a resumption of the downtrend.
The short-term range is 1.1242 to 1.1126. Its 50% level or pivot is 1.1184. This price is controlling the direction of the market at this time.
A sustained move over 1.1184 will indicate an upside bias. This could trigger a rally into the downtrending angle at 1.1202. We saw this move earlier in the session.
Taking out 1.1202 will indicate the buying is getting stronger with 1.1219 and 1.1242 potential upside targets. The major upside target today is a downtrending angle at 1.1256.
A sustained move under 1.1184 will signal the presence of sellers. The first target is an uptrending angle at 1.1166. The next uptrending angle comes in at 1.1146. This is the last potential uptrending angle from the 1.1126 main bottom.
If 1.1126 fails the selling is likely to extend into the Fibonacci level at 1.1125 and a long-term uptrending angle at 1.1100.
Watch the price action and read the order flow at 1.1184 all day. Trader reaction to this pivot will tell us if the bulls or the bears are in control.
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.