EUR/USD Mid-Session Technical Analysis for April 9, 2018

The EUR/USD is trading nearly flat shortly after the opening of the U.S. trade session. The Forex pair is finding support from increased demand for higher risk assets due to an easing of concerns over the simmering trade war between the United States and China.

At 1154 GMT, the EUR/USD is at 1.2282, up 0.0003 or +0.03%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, Friday’s closing price reversal bottom may be signaling a shift in momentum to the upside.

A confirmation of the chart pattern on a move through 1.2290 could trigger the start of a 2 to 3 day rally with 1.2345 the minimum upside target.

A trade through 1.2214 will negate the closing price reversal chart pattern and signal a resumption of the downtrend.

On the downside, the first support is a long-term 50% level at 1.2235. Additional support is another long-term 50% level at 1.2166, a Fibonacci level at 1.2160 and a main bottom at 1.2153.

On the upside, the resistance is a series of retracement levels at 1.2345, 1.2354 and 1.2376.

Daily 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 a pair of Gann angles at 1.2288 and 1.2296.

Overtaking 1.2288 will indicate the presence of buyers. Look for selling on the first test of 1.2296. However, overtaking this Gann angle will indicate the buying is getting stronger. It could also trigger an acceleration to the upside. The daily chart indicates there is room to run to 1.2345 over the near-term.

The inability to overcome 1.2288 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside with potential targets a 50% level at 1.2235, an uptrending Gann angle at 1.2221 and the reversal bottom at 1.2214.