EUR/USD Mid-Session Technical Analysis for April 2, 2019

The Euro is trading lower on Wednesday, within striking distance of a three-and-a-half week low put in on March 7, the day the European Central Bank announced several measures to prop up the single currency. Traders are saying that yesterday’s strong U.S. economic data is making the U.S. Dollar a more attractive asset than the Euro.

At 12:00 GMT, the EUR/USD is trading 1.1203, down 0.0009 or -0.08%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 1.1177 will change the main trend to down.

The minor trend is down. This is controlling the momentum. Furthermore, the Forex pair has been under pressure since posting a weekly closing price reversal top the week-ending March 22. A trade through 1.1250 will change the minor trend to up.

The major support is a long-term Fibonacci level at 1.1185. In March, a long-term 50% level at 1.1447 topped the rally.

The short-term range is 1.1177 to 1.1448. Its retracement zone at 1.1281 to 1.1313 is resistance. Trading below this zone is helping to generate a downside bias.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the slow-moving uptrending Gann angle at 1.1222 and the Fibonacci level at 1.1185.

Bullish Scenario

Overtaking and sustaining a rally over 1.1222 will indicate the return of buyers. The first target is a minor top at 1.1250. This is followed closely by a resistance cluster at 1.1267 to 1.1268.

Bearish Scenario

Taking out and sustaining a move under 1.1185 will signal the presence of sellers. Their first target is the main bottom at 1.1177. A break through this level will be bearish since the next major target is the June 20, 2017 main bottom at 1.1118.