EUR/USD Mid-Session Technical Analysis for December 11, 2018Based on the earlier price action and the current price at 1.1390, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 1.1395.
The Euro is trading higher shortly before the U.S. opening on Tuesday. The single-currency is reacting to a weaker U.S. Dollar. There is no single factor behind the whip-saw price action the last two sessions. Traders are watching developments over Brexit, reacting to new concerns over a weakening economy and the possibility the U.S. Federal Reserve will announce a pause in its future rate increases sooner than previously thought at next week’s monetary policy meeting.
At 1131 GMT, the EUR/USD is trading 1.1390, up 0.0034 or +0.31%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 1.1474 will change the main trend to up. A move through 1.1267 will signal a resumption of the downtrend.
On Monday, the EUR/USD posted a potentially bearish closing price reversal top. A trade through 1.1350 will confirm the chart pattern. This will shift momentum to the downside. A trade through 1.1444 will negate the chart pattern.
The price action of the EUR/USD continues to be influenced by a series of retracement levels.
On the upside, the major 50% level at 1.1447 stopped the rally on Monday at 1.1444.
On the downside, the selling stopped slightly above a retracement zone at 1.1345 to 1.1315.
Currently, the Forex pair is straddling another retracement zone at 1.1370 to 1.1395.
Daily Swing Chart Technical Forecast
Based on the earlier price action and the current price at 1.1390, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 1.1395.
A sustained move over 1.1395 will indicate the presence of buyers. If this move generates enough upside momentum then look for a potential rally into 1.1444 to 1.1447.
A sustained move under 1.1395 will signal the presence of sellers. This could lead to a labored break because of a series of retracement levels at 1.1370, 1.1345 and 1.1315.