EUR/USD Mid-Session Technical Analysis for August 29, 2018

Light trading and profit-taking ahead of today’s Preliminary U.S. GDP report at 1230 GMT and the U.S. holiday week-end are weighing on the EUR/USD on Wednesday.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, it looks like the rally stalled at 1.1734, just in front of a pair of main tops at 1.1747 and 1.1751. Taking out 1.1734 will signal a resumption of the uptrend. Prices could surge over 1.1751 with the 1.1791 main top the next major upside target.

The minor trend is also up, but a new minor top has formed at 1.1734.

The minor range is 1.1530 to 1.1734. Its 50% level or pivot comes in at 1.1632. This level may be controlling the direction of the market today.

The main range is still 1.1747 to 1.1301 with its retracement zone at 1.1577 to 1.1524 the primary downside target.

Daily Technical Forecast

Based on the early price action, the resistance is clearly a Gann angle cluster at 1.1695 to 1.1701. This area provided resistance earlier in the day when the selling stopped at 1.1700.

Overtaking 1.1701 will indicate the buying is getting stronger with 1.1734 the next target. This is followed by 1.1747, 1.1751 then 1.1791.

The sustained move under 1.1695 seems to be picking up momentum. If the selling pressure continues then look for a test of a downtrending Gann angle at 1.1642, followed by the short-term pivot at 1.1632.

We could see a technical bounce on the first test of 1.1642 to 1.1632, but if it fails then look for an acceleration to the downside with the next major target coming in at 1.1577.

Low volume is a problem today so be careful buying strength and selling weakness. Basically, the EUR/USD could strengthen over 1.1701 and weaken under 1.1632.