EUR/USD Mid-Session Technical Analysis for December 15, 2017

The EUR/USD is trading higher shortly after the U.S. opening. The Forex pair opened lower then took out yesterday’s low before recovering enough to turn higher for the session. The price action suggests aggressive counter-trend buyers may be attempting to form a potentially bullish secondary higher bottom.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1940 will change the main trend to up. A move through 1.1717 will signal a resumption of the downtrend.

Yesterday’s closing price reversal top at 1.1862 was triggered by a news event. Taking out this level will negate the chart and signal that traders have absorbed the comments from European Central Bank President Mario Draghi.

A price cluster formed by a pair of 50% levels at 1.1823 and 1.1829 is the first resistance. This is followed by a Fibonacci level at 1.1855. This level essentially stopped the EUR/USD on Thursday.

The short-term range is 1.1717 to 1.1862. Its retracement zone at 1.1789 to 1.1772 is currently being tested. Traders tried to take out this zone earlier, but buyers came in to drive it back to the strong side of this zone. If buyers can hold this zone then it will become support.

Daily Technical Forecast

Based on the current price at 1.1799 and the earlier price action, the direction of the EUR/USD is likely to be determined by trader reaction to the short-term 50% level at 1.1789.

A sustained move over 1.1789 will indicate the presence of buyers. This could create the upside momentum needed to challenge the resistance cluster at 1.1823 to 1.1829 and a downtrending angle at 1.1840.

A sustained move under 1.1789 will signal the presence of sellers. The first two targets are 1.1777 and 1.1772. Look for a possible acceleration into 1.1747 if 1.1772 fails as support.