EUR/USD Mid-Session Technical Analysis for May 31, 2016

The EUR/USD is trading higher at the mid-session. The Forex pair is trading better after following through to the upside, following yesterday’s closing price reversal bottom.

The main range is 1.0821 to 1.1616. Its retracement zone is 1.1219 to 1.1125. The market is currently trading inside this zone while trying to develop a support base.

The minor range is 1.1242 to 1.1097. Its mid-point or pivot is 1.1170. We could say that this price is controlling the short-term direction of the market.

The current price is 1.1152. If the upside momentum continues today then look for the rally to extend into the short-term pivot at 1.1170 and the downtrending angle at 1.1182. Since the trend is down, we could see a technical bounce on the first test of this area.

The angle at 1.1182 is also the trigger point for an acceleration to the upside with the next target the long-term downtrending angle at 1.1196, followed closely by the main 50% level at 1.1219.

The inability to reach 1.1170 will indicate the presence of sellers. This could drive the market back into the main Fibonacci level at 1.1125. This is followed by the long-term uptrending angle at 1.1111. This angle stopped the break on Monday.

A failure to hold 1.1111 will indicate the selling is getting stronger. The next target under this angle is the closing price reversal bottom at 1.1097. Taking out this price will negate the chart pattern and signal a resumption of the downtrend.

The daily chart indicates there is plenty of room to the downside under 1.1097 with the next target angle coming in at 1.0966.