EUR/USD Mid-Session Technical Analysis for August 23, 2018

Based on the current price at 1.1590 and the earlier price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the support cluster at 1.1577.
James Hyerczyk

The Euro is trading slightly lower shortly before the U.S. opening. The single currency is being pressured by expectations of additional rate hikes by the Fed after the minutes from the July 31-August 1 FOMC monetary policy meeting suggested policymakers felt the need to continue to raise rates gradually.

At 1057 GMT, the EUR/USD is trading 1.1590, down 0.0008 or -0.07%.

Volume is light as investors await the start of the central bankers’ symposium at Jackson Hole, Wyoming. Federal Reserve Chair Jerome Powell is the keynote speaker on Friday.


Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the closing price reversal bottom at 1.1301 on August 15.

A trade through 1.1628 will change the main trend to up. A move through 1.1301 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The minor trend is also down. A trade through 1.1624 will change the main trend up. This will also confirm the upward shift in momentum.

The main range is 1.1747 to 1.1301. Its retracement zone is 1.1577 to 1.1524. Holding on the strong side of this zone will also signal a shift in momentum. These two levels could develop into support today. One could say the near-term direction of the EUR/USD depends on trader reaction to the retracement.

The short-term range is 1.1301 to 1.1624. If sellers retake control then look for a possible pullback into its retracement zone at 1.1463 to 1.1424.

Daily Technical Forecast

Based on the current price at 1.1590 and the earlier price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the support cluster at 1.1577.

A sustained move over 1.1577 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible drive into 1.1624, followed closely by 1.1628. Taking out this level could lead to a test of a downtrending Gann angle at 1.1662.

A sustained move under 1.1577 will signal the return of sellers. This could trigger a pullback into the steep uptrending Gann angle at 1.1541. This angle provided support earlier today.

If 1.1541 fails as support then look for the selling to extend into 1.1524. This 50% level is the major support. If it fails then look for an acceleration to the downside with 1.1463 the next major target.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.