EUR/USD Mid-Session Technical Analysis for February 6, 2019

Based on the early price action, the direction of the EUR/USD is likely to be determined by trader reaction to the uptrending Gann angle at 1.1379.
James Hyerczyk
EUR/USD

The Euro is under pressure on Wednesday with the selling being fueled by traders betting the European Central Bank will hold interest rates at low levels for a prolonged period of time. This is in reaction to the dovish comments from Reserve Bank of Australia Governor Philip Lowe, who said in a speech earlier today that the central bank may have to cut interest rates later this year.

At 13:39 GMT, the EUR/USD is trading 1.1390, down 0.0015 or -0.13%.

Daily EUR/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1514 will change the main trend to up. A move through 1.1289 will signal a resumption of the downtrend.

The minor trend is also down. It turned down when sellers took out 1.1407 on Tuesday. This move shifted momentum back to the downside.

The short-term range is 1.1289 to 1.1514. The EUR/USD is currently testing its retracement zone at 1.1402 to 1.1375. 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 is likely to be determined by trader reaction to the uptrending Gann angle at 1.1379.

Bullish Scenario

A sustained move over 1.1379 will indicate the presence of buyers. This angle provided support earlier today. If it is able to create enough upside momentum then look for a drive into the 50% level at 1.1402. This is a potential trigger point for an acceleration to the upside with the next target a downtrending Gann angle at 1.1434.

Bearish Scenario

A sustained move under 1.1379 will signal the presence of sellers. This is followed by the Fibonacci level at 1.1375. The daily chart indicates there is plenty of room to the downside under this level. Look for an acceleration to the downside if 1.1375 with the next major target angle coming in at 1.1334.

Please let us know what you think in the comments below. 

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