EUR/USD Mid-Session Technical Analysis for April 22, 2019

Based on the early trade, the direction of the EUR/USD on Monday is likely to be determined by trader reaction to the resistance cluster at 1.1254.
James Hyerczyk

The Euro is edging higher on Monday, but low post-holiday trading is limiting the price action. The single-currency is trying to claw back some of its losses from last week when it posted a nearly half a percent decline. The catalyst behind last week’s selling pressure was a report that showed Germany’s manufacturing sector shrank for a fourth straight month in April.

At 13:15 GMT, the EUR/USD is trading 1.1251, up 0.0007 or +0.06%.


Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. The main trend will change to down on a trade through 1.1184. A move through 1.1324 will signal a resumption of the uptrend.

The minor trend is down. It turned down last week when sellers took out the minor bottom at 1.1230. This move shifted momentum to the downside.

The short-term range is 1.1184 to 1.1324. Its retracement zone at 1.1254 to 1.1238 is currently being tested. This zone is important to the chart structure. Buyers are coming in to support the EUR/USD in an effort to produce a potentially bullish secondary higher bottom. Sellers are going to try to drive the EUR/USD through this zone in an effort to make 1.1324 a new main top.

The main range is 1.1448 to 1.1184. Its retracement zone at 1.1316 to 1.1347 is resistance. This zone stopped the rally last week at 1.1324.

On the downside, the major support is a long-term Fibonacci level at 1.1185.

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD on Monday is likely to be determined by trader reaction to the resistance cluster at 1.1254.

Bullish Scenario

A sustained move over 1.1254 will indicate the presence of buyers. This is a potential trigger point for an acceleration to the upside since the next major upside target comes in at 1.1316.

Bearish Scenario

A sustained move under 1.1254 will signal the presence of sellers. The first downside target is the Fibonacci level at 1.1238. If this level fails then look for a further break into a support cluster at 1.1219 to 1.1218.

We could see a technical bounce on the first test of 1.1219 to 1.1218, but if this zone fails then look for the selling to possibly extend into 1.1185, 1.1184 and 1.1177.

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