The EUR/USD is trading slightly better shortly before the U.S. opening. The strong price action this week has put the Forex pair in a position to change the main trend to up if it can power through a short-term retracement zone.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.1862 will change the main trend to up. The next target top comes in at 1.1940.
The Forex pair is also trading inside a major retracement zone at 1.1823 to 1.1886 while testing the main retracement zone at 1.1829 to 1.1855. Currently, the EUR/USD is holding the 50% level at 1.1855, but ran into resistance at the Fibonacci level at 1.1855.
The short-term range is 1.1717 to 1.1862. If the EUR/USD stays in a range then its retracement level at 1.1789 to 1.1772 will become the primary downside target.
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 Fibonacci level at 1.1855.
A sustained move under 1.1855 will indicate the presence of sellers. This could lead to a labored break with potential support targets at 1.1837, 1.1829, 1.1823 and 1.1816.
Taking out 1.1816 could trigger an acceleration to the downside with the next target coming in at 1.1789.
Overtaking 1.1855 will indicate the buying is getting stronger. This could lead to a test of the main top at 1.1862. Overtaking this level will change the main trend to up and trigger a rally into a downtrending angle at 1.1875.
The EUR/USD will pick up strength over 1.1875 with the next target 1.1886. This is a possible trigger point for an acceleration into 1.1910.
Look for a choppy trade today if the EUR/USD holds between 1.1823 and 11.855. The trigger point for an acceleration to the upside is 1.1855, and to the downside, 1.1816.