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EUR/USD Forex Technical Analysis – July 26, 2018 Forecast

By:
James Hyerczyk
Published: Jul 26, 2018, 05:56 UTC

Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 1.1720.

Euro Building

The Euro is trading slightly higher versus the dollar early Thursday in reaction to the news that the United States and the European Union agreed to begin talks to lower tariffs. The story broke on Wednesday, helping to push the single-currency up about 0.40 percent as it eased immediate concerns about worsening global trade tensions.

At 0540 GMT, the EUR/USD is trading 1.1736, up 0.0008 or +0.07%.

At the conclusion of his talk with European Commission President Jean-Claude Juncker, President Trump said they had agreed to “work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods.”

EUR/USD
Daily EUR/USD

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Monday when buyers took out the previous main top at 1.1746, however, there was very little follow-through and the rally stalled with a minor closing price reversal at 1.1752. A trade through this level will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is also up. A trade through 1.1717 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 1.1851 to 1.1509. The EUR/USD is currently trading on the strong side of its retracement zone at 1.1720 to 1.1680, helping to give the Forex pair an upside bias.

The short-term range is 1.1575 to 1.1752. Its retracement zone at 1.1664 to 1.1643 is support. The minor bottom at 1.1717 was formed inside this zone.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 1.1720.

A sustained move over 1.1720 will indicate the presence of buyers. It this generates enough upside momentum, look for buyers to take a run at 1.1752. Taking out this top could trigger an acceleration into the next main top at 1.1791.

A sustained move under 1.1720 will signal the presence of sellers. If selling volume increases on the move, we could see a spike into 1.1680, followed by 1.1664. Additional support is 1.1717 and 1.1643.

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.

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