EUR/USD Mid-Session Technical Analysis for July 29, 2016

The EUR/USD is trading higher at the mid-session and inside yesterday’s range. This indicates impending volatility with a bias to the upside. We’ll have to see if enough buying volume comes in to drive the market through yesterday’s high at 1.1119.

There is plenty of room to the upside so we could see an acceleration through 1.1119. The next targets are a 50% level at 1.1168 and a long downtrending angle at 1.1186. Since the main trend is down, we could see sellers on the first test of these levels.

However, a move through 1.1186 will take out the angle and the July 7 high. This could trigger an extension into 1.1229.

The support levels are labored however. The first support comes in at 1.1096. This is followed by 50% levels at 1.1068 and 1.1048. A long uptrending angle from the 1.01910 bottom is another potential support angle at 1.1035.

Based on the current price at 1.1109, the direction of the EUR/USD the rest of the session is going to be determined by trader reaction to the short-term Fibonacci level at 1.1096. The chart indicates the way of least resistance is to the upside. Any sell-off is likely to be labored.