EUR/USD Mid-Session Technical Analysis for April 3, 2019

The Euro is trading higher on Wednesday on optimism over the announcement of a trade deal between the United States and China. Short-sellers are covering positions and taking profits, while speculative buyers are taking on a few risky counter-trend long positions in anticipation of the event. Dollar hedgers are also lightening up on the long-side as demand for the safe-haven greenback is falling.

At 05:14 GMT, the EUR/USD is trading 1.1223, up 0.0018 or +0.16%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade though 1.1176 will change the main trend to down.

The minor trend is down. A trade through 1.1183 will reaffirm the trend. A move through 1.1250 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is 1.1250 to 1.1183. Its 50% level or pivot at 1216 is controlling the direction of the Forex pair.

The main range is 1.1448 to 1.1183. Its retracement zone at 1.1316 to 1.1347 is the primary upside target.

On the downside, major Fibonacci support is 1.1185. This level may have stopped the selling on Tuesday.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the pivot at 1.1216.

Bullish Scenario

A sustained move over 1.1216 will indicate the presence of buyers. This could trigger a rally into a downtrending Gann angle at 1.1248. Look for sellers on the first test of this angle.

A breakout over 1.1248 will indicate the buying is getting stronger. Overcoming 1.1250 will change he minor trend to up. If this move creates enough upside momentum then look for an eventual rally into the main 50% level at 1.1316.

Bearish Scenario

A sustained move under 1.1216 will signal the presence of sellers. If this move generates enough downside momentum then look for a test of 1.1185 to 1.1183. This is followed closely by the main bottom at 1.1176.

The main bottom is the trigger point for a potential acceleration to the downside with June 20, 2017 main bottom at 1.1118 the next major downside target.