EUR/USD Mid-Session Technical Analysis for February 18, 2019

The Euro is trading higher on Monday as investors take advantage of the thin trading conditions due to the U.S. bank holiday. Position-squaring ahead of the Wednesday’s U.S. Federal Reserve monetary policy meeting minutes and the lifting of safe-haven U.S. Dollar hedge positions are also helping to generate upside momentum.

AT 11:43 GMT, the EUR/USD is trading 1.1328, up 0.0037 or +0.33%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1342 will change the main trend to up. A move through 1.1234 will signal a resumption of the downtrend.

The minor trend is also down. Today’s price action helped form a new minor bottom at 1.1234.

The short-term range is 1.1342 to 1.1234. Its 50% level or pivot is 1.1288. Trading above this level is helping to generate some of today’s upside momentum.

The main range is 1.1514 to 1.1234. If the main trend changes to up then its retracement zone at 1.1374 to 1.1407 will become the primary upside target.

Daily Technical Forecast

The early price action shows support is the pivot at 1.1288. If this move creates enough upside momentum then look for buyers to make a run at 1.1342. Taking out this level will change the main trend to up. This move could trigger an acceleration to the upside with the next target a 50% level at 1.1374, followed by a downtrending Gann angle at 1.1394.

A failure to hold 1.1288 will signal the return of sellers. The first target is a downtrending Gann angle at 1.1274. Crossing to the weak side of this angle will put the EUR/USD in a bearish position with the next target last week’s low at 1.1234, followed by the November 12 bottom at 1.1216.