EUR/USD Mid-Session Technical Analysis for April 8, 2019
The Euro is trading higher on Monday, but inside the previous day’s range for a third session. This chart pattern suggests investor indecision and impending volatility. The catalyst behind the early strength is a weaker U.S. Dollar.
The Greenback is being pressured by concerns over slowing growth after Friday’s U.S. Non-Farm Payrolls report showed softer average hourly wage growth. Traders could also be squaring positions ahead of Wednesday’s release of the minutes of the U.S. Federal Reserve’s March monetary policy meeting.
At 10:36 GMT, the EUR/USD is trading 1.1242, up 0.0027 or +0.24%.
Daily Swing Chart Technical Analysis
Despite the prolonged move down in terms of price and time from the March 20 main top at 1.1448, the main trend is actually up according to the swing chart. It turned up that same day when buyers took out the previous main top at 1.1420. 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 up. It turned up on April 3. This move shifted momentum to the upside.
On the downside, the support is a long-term Fibonacci level at 1.1185.
A new main range has formed between 1.1448 and 1.1183. Its retracement zone at 1.1316 to 1.1347 is a potential upside target.
Daily Swing Chart 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 1.1232.
A sustained move over 1.1232 will signal the presence of buyers. The first upside target is the minor top at 1.1255. Taking out this level could drive the EUR/USD into the next uptrending Gann angle at 1.1287. This angle is a potential trigger point for an acceleration into the 50% level at 1.1316.
A sustained move under 1.1232 will indicate the presence of sellers. The next downside target is a price cluster at 1.1183, 1.1185 and 1.1187. We could see a technical bounce on the first test of 1.1183 to 1.1187, but if it fails then look for the selling to extend into the main bottom at 1.1177. The trend will change to down on a trade through this main bottom.