EUR/USD Mid-Session Technical Analysis for February 6, 2018

The EUR/USD is trading slightly higher shortly before the U.S. opening. The market traded lower earlier in the session, but has sense recovered. Traders are watching the volatility in the stock market. The Euro could tumble later today if a steep drop in the equities market sends investors into the safety of the U.S. Dollar.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.2334 will change the main trend to down. This could trigger a further drop into the next main bottom at 1.2164.

A trade through 1.2522 will signal a resumption of the uptrend. This is followed closely by the next main top at 1.2537.

The short-term range is 1.2537 to 1.2334. Its 50% level or pivot is 1.2435. This level is controlling the short-term direction of the market.

The intermediate range is 1.2164 to 1.2537. Its retracement zone is 1.2351 to 1.2307. This zone is providing support.

The major resistance level is 1.2597. The major support level is 1.2166.

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD today is likely to be determined by trader reaction to 1.2351.

A sustained move above 1.2351 will indicate the presence of buyers. This could drive the Euro into 1.2416 and 1.2435. We saw this move earlier today.

Taking out 1.2435 could trigger an acceleration into a downtrending angle at 1.2497. This is the last potential resistance angle before the 1.2522 and 1.2537 main tops.

A sustained move under 1.2351 will signal the presence of sellers. This could trigger a fast break into 1.2315 and 1.2307.

The trigger point for an acceleration to the downside is 1.2307. If this price fails, we could see a major pullback into 1.2166.