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EUR/USD Mid-Session Technical Analysis for April 1, 2019

By:
James Hyerczyk
Published: Apr 1, 2019, 13:35 UTC

Based on the early price action, the direction of the EUR/USD on Monday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1220.

EUR/USD

The Euro is edging higher on Monday in response to upbeat economic data from China. Better-than-expected Chinese Manufacturing PMI dampened fears of a global economic slowdown. This also helped reduce the U.S. Dollar’s appeal as a safe-haven asset, encouraging traders to sell the greenback and buy the Euro.  Traders also feel the news from China may lead to economic improvements in the Euro Zone. Furthermore, we could be looking at position-squaring ahead of a slew of U.S. economic data this week, including U.S. Non-Farm Payrolls on Friday.

At 12:19 GMT, the EUR/USD is trading 1.1234, up 0.0016 or +0.15%.

 EURUSD
Daily EUR/USD

Daily Technical Analysis

The main trend is up according to the daily swing chart, but momentum has been trending lower since the week-ending March 22. A trade through 1.1177 will change the main trend to down. A move through 1.1448 will signal a resumption of the uptrend.

The minor trend is down. This supports the downside shift in momentum. A new minor bottom has formed at 1.1201. A trade through this level will reaffirm the minor downtrend.

The next support target is a major, long-term Fibonacci level at 1.1185.

The main range is 1.1177 to 1.1448. Its retracement zone at 1.1281 to 1.1313 is resistance.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD on Monday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1220.

Bullish Scenario

A sustained move over 1.1220 will indicate the presence of buyers. If this creates enough upside momentum then look for a rally to possibly extend into the next uptrending Gann angle at 1.1262. Overtaking this angle could drive the EUR/USD into a Fibonacci level at 1.1281, followed closely by a downtrending Gann angle at 1.1288.

Bearish Scenario

A sustained move under 1.1220 will signal the presence of sellers. Taking out 1.1201 will indicate the selling is getting stronger with the next downside targets the Fib level at 1.1185, followed by the main bottom at 1.1177. This is the potential trigger point for an acceleration into 1.1118, the June 20, 2017 main bottom.

The U.S. Retail Sales data was mixed so we saw no reaction by the Euro. Next up is the ISM Manufacturing PMI.

 

 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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