EUR/USD Mid-Session Technical Analysis for December 18, 2018

The EUR/USD is trading higher on Monday, shortly after the U.S. opening. The Forex pair is mounting a comeback after successfully testing 1.1736. This also looks like a successful test of the December 12 main bottom.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.862 will change the main trend to up. A move through 1.1717 will signal a resumption of the downtrend.

The short-term range is 1.1717 to 1.1862. Its retracement zone at 1.1789 to 1.1772 is currently being tested. Crossing to the strong side of this zone will give the EUR/USD and upside bias. Breaking back under the zone will give it a downside bias. Currently it is trading on the strong side of the zone.

A pair of 50% levels at 1.1823 and 1.1829 is the first upside target. Since the main trend is down, we could see resistance on the first test of this area. Overtaking 1.1829 could trigger a rally to 1.1855.

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the 50% level at 1.1789.

A sustained move over 1.1789 will indicate the presence of buyers. The first target is an uptrending Gann angle at 1.1797. This angle is the trigger point for an acceleration into at least 1.1823. This is followed by a resistance cluster at 1.1829 to 1.1830.

A sustained move under 1.1789 will signal the presence of sellers. The first target is the short-term Fibonacci level at 1.1772. A failure at this level could drive the market into an uptrending Gann angle at 1.1757. This is followed by another uptrending Gann angle at 1.1737. This angle provided support earlier today and is the last potential support angle before the 1.1717 main bottom.