Advertisement
Advertisement

EUR/USD Mid-Session Technical Analysis for July 28, 2016

By:
James Hyerczyk
Published: Jul 28, 2016, 11:20 UTC

The EUR/USD is trading higher at the mid-session. After several days of consolidation, the Forex pair is breaking out of its short-term range, reaching

European Central Bank, Frankfurt

The EUR/USD is trading higher at the mid-session. After several days of consolidation, the Forex pair is breaking out of its short-term range, reaching its highest level since July 15.

The main trend is down according to the daily swing chart. However, momentum is to the upside due to the formation of a potentially bullish closing price reversal bottom on July 25 at 1.0951. Additionally, the buying was strong enough yesterday to turn the Minor Trend up on a trade through 1.1030.

Daily EURUSD

We can see that the market has crawled through several layers of retracement levels, putting it in a position to extend the rally if a move can be sustained over 1.1096.

The daily chart opens up to the upside over 1.1096 with the next potential target the major 50% level at 1.1168. This is followed by a long-term downtrending angle at 1.1186.

A sustained move under 1.1096 will indicate the presence of sellers. They could drive the Euro back into 50% levels at 1.1068 and 1.1048. The latter is followed by a long-term support angle at 1.1030.

Look for the upside bias to continue into the close on a sustained move over 1.1096. The way of least resistance is up so we could see a strong breakout move if big buying volume comes in.

The inability to overcome 1.1096 will indicate there is a seller in the market. However, due to the number potential support levels, any break is likely to be labored.

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.

Did you find this article useful?

Advertisement