EUR/USD Mid-Session Technical Analysis for February 27, 2019

The Euro is trading flat on Wednesday as investors prepare for a second day of Congressional testimony from U.S. Federal Reserve Chairman Jerome Powell. On Monday, Powell reiterated the central bank’s shift to a more “patient” policy approach. As long as the Fed sticks with its neutral approach, the Euro is expected to be underpinned. Investors are also watching for developments from the U.S.-North Korean summit and the on-going U.S.-China trade talks.

At 12:23 GMT, the EUR/USD is trading 1.1389, down 0.0001 or -0.01%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today, but there was little follow-through to the upside. Taking out 1.1404 will indicate the return of buyers. Turning lower for the session will put the Forex pair in a position to post a potentially bearish closing price reversal top. The main trend changes to down on a move through 1.1317.

The main range is 1.1514 to 1.1234. The EUR/USD is currently trading inside its retracement zone at 1.1374 to 1.1407. This zone is controlling the near-term direction of the Forex pair.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the 50% level at 1.1374.

Bullish Scenario

A sustained move over 1.1374 will indicate the presence of buyers. However, the rally is likely to be labored with potential resistance levels lined up at 1.1377, 1.1394 and 1.1407.

Overtaking 1.1407 will indicate the buying is getting stronger, but the downtrending Gann angle at 1.1419 is the actual trigger point for an acceleration to the upside. The daily chart indicates there is room to run over this angle with the next target angle coming in at 1.1467. This is the last potential target angle before the 1.1514 main top.

Bearish Scenario

A sustained move under 1.1374 will signal the return of sellers. If this move creates enough downside momentum then look for the selling to extend into a minor 50% level at 1.1361, followed by the main bottom at 1.1317.