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EUR/USD Mid-Session Technical Analysis for December 26, 2018

By:
James Hyerczyk
Updated: Dec 26, 2018, 13:11 UTC

Based on the current price at 1.1385, 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 1.1376.

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The Euro is trading lower shortly after the U.S. opening on Wednesday. The single-currency is giving back earlier gains in response to a rebound in U.S. equity indexes. The move is encouraging investors to shed their safe-haven currencies, helping to push the U.S. Dollar higher against a basket of currencies including the heavily-weighted Euro. A thin post-holiday trade due to bank holidays in Germany and Italy could also be contributing to the selling pressure.

AT 1252 GMT, the EUR/USD is trading 1.1385, down 0.0009 or -0.09%.

EURUSD
Daily EUR/USD

Daily Technical Analysis

The main trend is up but since changing trend on December 20, the Euro has been under pressure. A trade through 1.1487 will signal a resumption of the uptrend while a move through 1.1270 will change the main trend to down.

The minor trend will change to down on a trade through 1.1355. This will also shift momentum to the downside.

Daily Gann Angle Analysis

On the downside, the first support angle comes in at 1.1376. There is a steep drop before the next uptrending support angle at 1.1296.

On the upside, the nearest resistance angle comes in at 1.1414. The next angle drops in at 1.1457.

Daily Technical Forecast

Based on the current price at 1.1385, 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 1.1376.

Bullish Scenario

Holding the Gann angle at 1.1376 will indicate the return of buyers. If this move can generate enough upside momentum then look for a potential retest of the downtrending Gann angle at 1.1414. This angle stopped the market earlier in the session.

Taking out 1.1414 with strong volume could drive the EUR/USD into the next downtrending Gann angle at 1.1457.

Bearish Scenario

A failure to hold the uptrending Gann angle at 1.1376 will signal the selling pressure is getting stronger. This could trigger a move into the minor bottom at 1.1355. Taking out this level will change the minor trend to down. The shift in momentum could even lead to an eventual test of the next uptrending Gann angle at 1.1296.

Overall, look for a bullish tone to develop on a sustained move over 1.1414 and for the bearish tone to continue on a sustained move under 1.1376.

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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