EUR/USD Mid-Session Technical Analysis for August 24, 2018

Based on the early price action, the direction of the EUR/USD today is likely to be determined by trader reaction to a steep uptrending Gann angle at 1.1581 and a downtrending Gann angle at 1.1567. Basically, look for an upside bias to develop on a sustained move over 1.1577, and for a downside bias to develop on a sustained move under 1.1524.
James Hyerczyk
EUR/USD
EUR/USD

The Euro is trading higher shortly before the U.S. opening. Volume is light with the major players likely bidding time before Fed Chairman Jerome Powell’s speech at 1400 GMT at the central bankers’ symposium at Jackson Hole, Wyoming. Investors will be watching Powell’s words closely for any clues on the pace of interest-rate hikes or his insights on the impact of tariffs, and U.S. economic growth.

At 1040 GMT, the EUR/USD is trading 1.1572, up 0.0029 or +0.27%.

Daily EUR/USD

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.

The minor trend is also down. A trade through 1.1624 will change the minor trend to up.

The main range is 1.1747 to 1.1301. Its retracement zone at 1.1524 to 1.1577 is currently being tested. This zone is controlling the near-term direction of the Euro.

The minor range is 1.1301 to 1.1624. Its retracement zone at 1.1463 to 1.1424 is the primary downside target. Aggressive counter-trend buyers could come in on a test of this zone. They’ll be trying to form a potentially bullish secondary higher bottom.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD today is likely to be determined by trader reaction to a steep uptrending Gann angle at 1.1581 and a downtrending Gann angle at 1.1567.

A sustained move over 1.1581 will indicate the presence of buyers. If this move attracts enough buyers, we could see a drive through 1.1624 then 1.1628. This could create the upside momentum needed to challenge a downtrending Gann angle at 1.1657. This is a potential trigger point for an acceleration into the next downtrending Gann angle at 1.1702. This is the last potential resistance angle before the 1.1747 main top.

A sustained move under 1.1567 will signal the presence of sellers. If this move creates enough downside momentum then look for a drive into the 50% level at 1.1524. This is a potential trigger point for an acceleration to the downside with the next key targets coming in at 1.1463 and 1.1441.

Basically, look for an upside bias to develop on a sustained move over 1.1577, and for a downside bias to develop on a sustained move under 1.1524.

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