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EUR/USD Mid-Session Technical Analysis for August 29, 2019

By:
James Hyerczyk
Updated: Aug 29, 2019, 14:18 UTC

Based on the early price action and the current price at 1.1074, the direction of the EUR/USD on Thursday is likely to be determined by trader reaction to a pair of Gann angles at 1.1077 and 1.1080.

EUR/USD Mid-Session Technical Analysis for August 29, 2019

The Euro is edging lower against the U.S. Dollar on Thursday as higher Treasury yields and increased appetite for risk are making the greenback a more attractive investment. The catalyst behind the price action are positive comments from China, which drove up demand for higher risk assets. The economic powerhouse said it wished to resolve its protracted trade dispute with the world’s largest economy with a “calm” attitude.

At 12:54 GMT, the EUR/USD is trading 1.1074, down 0.0004 or -0.04%.

Traders reacted by selling safe-haven Treasurys, which drove up yields, the Japanese Yen and gold. Buyers drove global equity markets higher.

In Europe, French Preliminary GDP rose more than expected, but Spanish and German Preliminary CPI came in lower than forecast. Signaling slower growth in the Euro Zone.

EURUSD
Daily EUR/USD

Daily Technical Analysis

The main trend is up according to the daily swing chart, but momentum has been trending lower since Monday’s closing price reversal top at 1.1164. The trend change took place on August 23 and may have been fueled by buy stops and panic buying rather than new money buying. It also occurred during peak volatility caused by an escalation of tensions between the United State and China. The Euro has since retreated in reaction to calmer conditions.

A trade through 1.1052 will change the main trend to down. A move through 1.1164 will signal a resumption of the uptrend.

The minor range is 1.1052 to 1.1164. Its 50% level or pivot at 1.1108 is controlling the near-term direction of the EUR/USD. Currently, the Forex pair is trading on the bearish side of this level.

Daily Technical Forecast

Based on the early price action and the current price at 1.1074, the direction of the EUR/USD on Thursday is likely to be determined by trader reaction to a pair of Gann angles at 1.1077 and 1.1080.

Bearish Scenario

A sustained move under 1.1077 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the main bottom at 1.1052. Taking out this bottom could trigger an acceleration into the multi-year low at 1.1027.

Bullish Scenario

A sustained move over 1.1080 will signal the presence of buyers. If this move attracts enough buyers then look for the rally to possibly extend into the pivot at 1.1108.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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