EUR/USD Mid-Session Technical Analysis for August 7, 2018

Increasing appetite for risky assets is helping to drive the Euro higher as it benefits from the shedding of the safe-haven U.S. Dollar. Early data shows the Chinese Yuan is also show signs of stabilizing, further pressuring the dollar. So essentially, it’s not the Euro that’s stronger, it’s the dollar that’s weaker.

At 1200 GMT, the EUR/USD is trading 1.15994 or +0.0046 or +0.40%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1530 will signal a resumption of the downtrend. A move through 1.1747 will change the main trend to up.

The minor trend is also down. Today’s price action has helped make 1.1530 a new minor bottom.

The short-term range is 1.1747 to 1.1530. Its retracement zone at 1.1639 to 1.1664 is the primary upside target.

The main retracement zone is 1.1680 to 1.1720.

Daily Technical Forecast

The EUR/USD strengthened early Tuesday when buyers jumped the steep downtrending Gann angle at 1.1547. The upside momentum created by the move could help extend the rally into the 50% level at 1.1639, followed closely by a downtrending Gann angle at 1.1647.

A break back under 1.1547 will signal the return of sellers. This could lead to a test of the minor bottom at 1.1530, the June 28 bottom at 1.1527 and the June 21 bottom at 1.1509.

The daily chart indicates there is room to the upside to challenge 1.1639 to 1.1647 today. Whether the EUR/USD gets there will be determined by momentum and rising volume.