EUR/USD Mid-Session Technical Analysis for August 27, 2018

The Euro is trading lower shortly after the U.S. opening. Earlier in the session the single-currency popped through Friday’s high to its best level since August 2 without much fanfare. The ship seems to have righted itself since tensions eased in Turkey around August 15. Last week, the country was on holiday so this week could bring some surprises.

At 1137 GMT, the EUR/USD is trading 1.1620, down 0.0003 or -0.03%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. It turned up on Friday when buyers took out the last main top at 1.1628. The momentum is up but seems to be waning a little.

After all, the EUR/USD is up eight sessions from the last main bottom which means it began today’s session inside the window of time for a potentially bearish closing price reversal top. This is the chart pattern we’ll be looking for if the Forex pair starts to weaken.

The main range is 1.1747 to 1.1301. The EUR/USD is currently trading on the strong side of its retracement zone at 1.1577 to 1.1524, helping to support its upside bias.

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Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to a steep uptrending Gann angle at 1.1621.

A sustained move over 1.1621 will indicate the presence of buyers. This could lead to a retracement of today’s intraday range and another test of the downtrending Gann angle at 1.1652. This angle is the trigger point for a potential acceleration to the upside with the next target angle coming in at 1.1700. This angle is the last potential resistance angle before the 1.1747 main top.

A sustained move under 1.1621 will signal the presence of sellers. If downside pressure builds on this move then look for follow-through selling to drive the EUR/USD into 1.1577. Further selling pressure under this level is likely to lead to a test of another downtrending Gann angle at 1.1557, followed by the minor bottom at 1.1530 and the 50% level at 1.1524.

The rally could fall apart under 1.1524 because this move along with the change in the minor trend will shift momentum to the downside.