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