EUR/USD Mid-Session Technical Analysis for February 26, 2018

Lower U.S. Treasury yields are helping to boost the Euro early Monday. Position-squaring ahead of a slew of U.S. economic data this week and the first testimony before Congress by newly appointed Fed Chair Jerome Powell is also helping to provide support.

At 1314 GMT, the EUR/USD is trading 1.2318, up 0.0025 or +0.20%.

Daily Technical Analysis

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

A trade through 1.2259 will indicate the selling is getting stronger. This could lead to a test of the main bottom at 1.2205. A trade through this bottom will change the main trend to down.

The major support is the longer-term retracement zone at 1.2235 to 1.2160. This zone provided support on February 9 at 1.2205.

The main range is 1.2205 to 1.2555. Its 50% level or pivot comes in at 1.2380. This level is controlling the direction of the EUR/USD. Holding below it will give the market a downside bias.

The short-term range is 1.2555 to 1.2259. Its retracement zone at 1.2407 to 1.2442 is the primary upside target. If the EUR/USD is getting ready to turn lower then sellers are likely to show up on a test of this zone.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD today is likely to be determined by trader reaction to a pair of Gann angles at 1.2315.

A sustained move over 1.2315 will indicate the presence of buyers. This move could create the upside momentum needed to challenge 1.2380, 1.2407 and 1.2435.

A sustained move under 1.2315 will signal the presence of sellers. The first downside target is a long-term uptrending Gann angle at 1.2256, followed by 1.2235 and another long-term uptrending Gann angle at 1.2216.