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

The EUR/USD is trading better at the mid-session. The Forex pair is still trading inside Friday’s wide range but posting a higher-high and a higher-low against yesterday’s range.

The main trend is down according to the daily swing chart, but today’s price action suggests that momentum may be shifting to the upside.

The main range is 1.0821 to 1.1616. Its retracement zone at 1.1121 to 1.1215 is the primary upside target.

The short-term range is 1.1426 to 1.0910. Its retracement zone at 1.1168 to 1.1229 is another upside target.

These two zones overlap at 1.1229 to 1.1168 with the long-term 50% level at 1.1215 and the short-term Fib level at 1.1229 forming a tight resistance cluster.

Based on yesterday’s close at 1.1022, the direction of the market is likely to be determined by trader reaction to the uptrending angle at 1.1016.

A sustained move over 1.1016 will indicate the presence of buyers. This could create enough upside momentum to challenge the main Fib level at 1.1121. This move may be taking place at this time.

Overcoming 1.1121 could drive the market into the short-term 50% level at 1.1168. This is another potential trigger point for an extension of the rally into a cluster of levels at 1.1211, 1.1215, 1.1216 and 1.1129. Since the main trend is down, look for sellers to come in on a test of this area.

A failure to overcome 1.1121 will signal the presence of sellers. This could drive the market back to 1.1016. This is another trigger point for an acceleration into the next angle at 1.0919. Angle stopped the market last week when it reached its bottom at 1.0910. It is also the last potential support angle before the 1.0821 main bottom.

Based on the current price at 1.1088, the direction of the EUR/USD the rest of the day is likely to be determined by trader reaction to the Fib level at 1.1121.