EUR/USD Mid-Session Technical Analysis for August 9, 2018

The Euro is trading lower against the U.S. Dollar on Thursday as investors increase their bets supporting the notion that the U.S. will win the trade war versus China and that the strong economy will continue to make the dollar a more attractive investment.

At 1334 GMT, the EUR/USD is trading 1.1594, down 0.0021 or -0.18%.

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.

The minor trend is also down. A trade through 1.1629 will change the minor trend to up. This will also shift momentum to the upside.

The main range is 1.1747 to 1.1530. Its retracement zone at 1.1639 to 1.1664. This zone is resistance. Since the main trend is down, sellers are likely to show up on a test of this zone.

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1590.

A sustained move under 1.1590 will signal the presence of sellers. This could trigger a break into the next uptrending Gann angle at 1.1560. This is the last potential support angle before the 1.1530 main bottom.

If 1.1530 fails as support then look for the selling to extend into the June 28 bottom at 1.1527 and the June 21 bottom at 1.1509.

A sustained move over 1.1590 will indicate the presence of buyers. However, the trigger point for an acceleration to the upside is the downtrending Gann angle at 1.1607.

Taking out 1.1607 could fuel a move into the minor top at 1.1629, followed by the 50% level at 1.1639.