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EUR/USD Mid-Session Technical Analysis for August 20, 2018

By:
James Hyerczyk
Published: Aug 20, 2018, 10:15 UTC

Based on the current price at 1.1412, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the short-term uptrending Gann angle at 1.1421.

EUR/USD

The Euro is trading lower shortly before the U.S. opening. Traders are responding to the German Producer Price Index report, which came in lower-than-expected. Economic news is limited in the U.S. to a speech by Federal Open Market Committee Member Bostic at 1500 GMT. Things are quiet in Turkey after several rating agencies downgraded the country’s creditworthiness over the week-end.  The country is also preparing for a three-day holiday.

At 0947 GMT, the EUR/USD is trading 1.1409, down 0.0028 or -0.25%.

EURUSD
Daily EUR/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1301 will signal a resumption of the downtrend. The Euro is in no position to change the main trend to up, but the closing price reversal bottom at 1.1301 on August 15 has shifted momentum to the upside.

The short-term range is 1.1301 to 1.1449. Its retracement zone at 1.1375 to 1.1358 is the primary downside target. Aggressive counter-trend buyers could come in on a test of this zone. They are going to try to form a secondary higher bottom inside this zone.

The intermediate range is 1.1628 to 1.1301. If the upside momentum continues then its retracement zone at 1.1465 to 1.1503 will become the primary upside target. Since the main trend is down, sellers may come in on a test of this zone.

The main range is 1.1747 to 1.1301. Its retracement zone at 1.1524 to 1.1577 is another upside target.

The best upside target zone is 1.1503 to 1.1524.

Daily Technical Forecast

Based on the current price at 1.1412, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the short-term uptrending Gann angle at 1.1421.

A sustained move under 1.1421 will indicate the presence of sellers. This could trigger an acceleration into the short-term 50% level at 1.1375, followed by an uptrending Gann angle at 1.1361 and the short-term 50% level at 1.1358. Watch for aggressive counter-trend buyers to step in on a test of this zone.

If 1.1358 fails as support then look for the selling to extend into the next uptrending Gann angle at 1.1331.

Overtaking and sustaining a move over 1.1421 will signal the presence of buyers. This could trigger a move into the resistance cluster at 1.1465 to 1.1467.

The downtrending Gann angle at 1.1467 is the trigger point for an acceleration to the upside with the next targets 1.1503 and 1.1524.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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