EUR/USD Mid-Session Technical Analysis for June 24, 2016

The EUR/USD plunged earlier in the session, but the selling stopped slightly above the March 10 bottom at 1.0821. This led to a short-covering rally that almost retraced 50% of the earlier sell-off from 1.1426.

Based on this price action, investors should continue to expect a two-sided trade today and higher-than-average volatility.

The main trend is down according to the daily chart. It turned down earlier when the Euro took out a swing bottom at 1.1235. It was reaffirmed on subsequent breaks through 1.1130 and 1.1097.

The main range is 1.0821 to 1.1616. Its retracement zone is 1.1121 to 1.1215. The break below this zone is giving the market a downside bias. It is also new resistance. A sustained move under the retracement zone will set a bearish longer-term trend.

The short-term range is 1.1426 to 1.0910. Its retracement zone at 1.1168 to 1.1229 is another upside target. Since the trend is down, sellers are likely to come in on a test of this area.

Based on the current price at 1.1064, the resistance lines up like this:  the main Fib level at 1.1121, a short-term 50% level at 1.1168, an uptrending angle at 1.1201, the main 50% level at 1.1215, a short-term Fib level at 1.1229 and a downtrending angle at 1.1236.

Taking out 1.1236 could trigger an acceleration to the upside.

On the downside, the nearest support is an uptrending angle at 1.1011. This is followed by another angle at 1.0916. This angle provided support earlier in the session. Taking out this angle could trigger an acceleration into the 1.0821 main bottom.