EUR/USD Mid-Session Technical Analysis for February 23, 2018

The Euro is trading lower at the mid-session. The Forex pair is also trading inside yesterday’s range which indicates investor indecision and impending volatility.

At 1356 GMT, the EUR/USD is trading 1.2299, down 0.00031 or -0.26%.

Traders continue to monitor the direction of U.S. Treasury yields. Later today, a series of Federal Open Market Committee member speeches are likely to dictate the price action.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been lower since the formation of a closing price reversal top on December 16.

On Thursday, traders formed a minor reversal bottom, but there has been no confirmation of the chart pattern. A move through 1.2352 will confirm the chart and could lead to a 2 to 3 day rally.

A move through 1.2259 will negate the chart pattern and indicate the selling is getting stronger with 1.2205 the next likely downside target.

The major support is a retracement zone at 1.2235 to 1.2160.

On the upside, the resistance is a series of retracement levels at 1.2380, 1.2407 and 1.2442.

Daily Technical Forecast

Based on the current trade, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to an uptrending Gann angle at 1.2305.

A sustained move over 1.2305 will indicate the presence of buyers. This could drive the market into a downtrending Gann angle at 1.2355. Look for selling on the first test of this angle. Overtaking it could fuel a surge into at least 1.2380.

A sustained move under 1.2305 will signal the presence of sellers. This move could generate a break into 1.2259 and 1.2246. Breaking the 50% level at 1.2235 will indicate the selling is getting stronger.