EUR/USD Mid-Session Technical Analysis for August 1, 2018

The Euro is trading lower shortly before the U.S. opening on Wednesday. The early pressure came from flight-to-safety buying into the U.S. Dollar on reports that President Trump was preparing to announce additional tariffs against China.

At 1050 GMT, the EUR/USD is trading 1.1686, down 0.00040 or -0.04%.

Helping to underpin the Forex pair and hold it in a range is position-squaring ahead of the Fed’s interest rate and monetary policy decisions at 1800 GMT.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, there isn’t much upside momentum with sellers stopping a rally on Tuesday at 1.1747 just shy of the recent main top at 1.1751.

A trade through 1.1751 will signal a resumption of the uptrend. A move through 1.1621 will change the main trend to down.

The main range is 1.1791 to 1.1575. The EUR/USD is currently testing its retracement zone at 1.1683 to 1.1708. Trader reaction to this zone should determine the next major move. It is currently controlling the price action.

Daily Technical Forecast

Based on the current price at 1.1686, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the 50% level at 1.1683.

A sustained move under 1.1683 will indicate the presence of sellers. This could drive prices into an uptrending Gann angle at 1.1665. Taking out this angle could lead to an acceleration to the downside with 1.1621 the next major downside target.

A sustained move over 1.1683 will signal the presence of buyers. This could trigger a rally into a resistance cluster at 1.1706 to 1.1708. Look for a technical bounce on the first test of this area.

Overtaking 1.1708 will indicate the buying is getting stronger. If this creates enough upside momentum then we could see a drive up to 1.1747 to 1.1749.