EUR/USD Mid-Session Technical Analysis for April 4, 2018

The EUR/USD is trading higher shortly after the U.S. opening. The market is trading inside yesterday’s range which indicates investor indecision and impending volatility. This should come as no surprise given the news about fresh tariffs from China. The Euro isn’t an export currency like the Australian Dollar so it could actually attract buyers if the U.S. Dollar and stocks sell-off later today.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since a closing price reversal top was formed at 1.2476 on March 27. Today is the sixth day down from this top. Usually markets start to attract buyers after a 7 to 10 day break, but due to the circumstances, we could see the start of a turn today. The best signal for a bottom would be a lower-low, higher-close.

A trade through 1.2239 will change the main trend to down.

The nearest support is a major 50% level at 1.2235. The next support is a price cluster at 1.2166 to 1.2160.

On the upside, the first resistance is a 50% level at 1.2354.

Daily Technical Forecast

Based on the current price action, the direction of the EUR/USD is likely to be determined by trader reaction to the uptrending Gann angle at 1.2273.

A sustained move over 1.2273 will indicate the presence of buyers. If this generates enough upside momentum then look for a possible rally into a resistance cluster at 1.2354 to 1.2356.

A sustained move under 1.2273 will signal the presence of sellers. This could trigger a break into yesterday’s low at 1.2253, followed by a support cluster at 1.2239, 1.2236 and 1.2235.

Crossing to the weak side of 1.2235 will indicate the selling is getting stronger. This could lead to a test of an uptrending Gann angle at 1.2213. This is the last potential support angle before the 1.2153 main bottom.