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EUR/USD Mid-Session Technical Analysis for December 14, 2017

By:
James Hyerczyk
Published: Dec 14, 2017, 11:48 UTC

Based on the early trade, the direction of the EUR/USD the rest of the session will be determined by trader reaction to the major 50% level at 1.1823.

EUR/USD

The EUR/USD is trading flat shortly before the European Central Bank’s interest rate and monetary policy decisions. Investors will be paying close attention to what ECB President Mario Draghi says, in regards to the economic state of the Euro Zone.

On Wednesday, the EUR/USD rallied 0.72%. Although the Fed raised rates as widely expected, it also left the number of future rate hikes unchanged which disappointed U.S. Dollar investors.

EURUSD
Daily EUR/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. Although a new main bottom was formed at 1.1717, momentum didn’t shift to the upside either.

A trade through 1.1940 will change the main trend to up. A move through 1.1717 will signal a resumption of the downtrend.

The major long-term retracement zone is 1.1823 to 1.1886. The EUR/USD is currently testing this zone.

The short-term range is 1.1940 to 1.1717. Its retracement zone is 1.1834 to 1.1859. This zone is currently resistance. Overtaking this zone will shift momentum to the upside.

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD the rest of the session will be determined by trader reaction to the major 50% level at 1.1823.

A sustained move over 1.1823 will signal the presence of buyers. This could lead to a labored rally due to the number of potential resistance levels including 1.1834, 1.1850 and 1.1859. The latter is the trigger point for a possible acceleration into 1.1886 and 1.1895.

A sustained move under 1.1823 will indicate the presence of sellers. This could trigger a quick break into the steep uptrending Gann angle at 1.1797. This is the trigger point for a steep break into the next uptrending Gann angle at 1.1757.

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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