EUR/USD Forex Technical Analysis – Major Target is Long-Term Fibonacci Level at 1.2597

The EUR/USD is trading slightly higher on low volume early Thursday. The Forex pair is sitting within striking distance of its three year high.

Buyers are still coming in to support the Euro on the hopes that the European Central Bank will end its monetary stimulus earlier than forecast.

The single currency is set to close higher for the week despite a sharp rise in U.S. Treasury yields which should’ve been supportive for the U.S. Dollar.

Daily Swing Chart Analysis

The main trend is trading higher according to the daily swing chart. A move through 1.2537 will signal a resumption of the uptrend.

The main trend will turn down on a move through 1.2334.

The short-term range is 1.2537 to 1.2334. Its 50% level or pivot is trading 1.2435. Trading on the strong side of this level is helping to generate an upside bias.

The main range is 1.2164 to 1.2537. Its retracement zone at 1.2351 to 1.2307 is support. This zone stopped the selling on January 30 at 1.2334.

Daily Swing Chart Forecast

Based on the early trade, the direction of the market today is likely to be determined by trader reaction to the short-term pivot at 1.2435.

A sustained move over 1.2435 will indicate the presence of buyers. This could create the upside momentum needed to take out 1.2537. This could trigger a rally into the December 16, 2014 main top at 1.2569, followed closely by the major Fibonacci level at 1.2597. This is a possible trigger point for an acceleration to the upside.

A sustained move under 1.2435 will signal the presence of sellers. This could drive the EUR/USD into 1.2351, 1.2334 and 1.2307.