EUR/USD Mid-Session Technical Analysis for February 7, 2019

Based on the early price action, the direction of the EUR/USD on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1339.
James Hyerczyk

The Euro is trading lower on Thursday after the European Commission (EU) cut its forecasts for economic growth in the Euro Zone. Traders also increased bets the European Central Bank will keep monetary policy accommodative. Earlier in the session, the Euro was pressured after German industrial output unexpectedly fell in December for the fourth consecutive month, underscoring fears about a broader slump in Europe.

At 14:17 GMT, the EUR/USD is trading 1.1345, down 0.0016 or -0.15%.


Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1289 will reaffirm the downtrend.

The short-term range is 1.1289 to 1.1514. Its retracement zone at 1.1375 to 1.1402 is controlling the direction of the Forex pair. Trading below this zone is helping to generate a downside bias. Traders should treat this zone like resistance.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1339.

Bullish Scenario

A sustained move over 1.1339 will indicate the return of buyers. If this generates enough upside bias then look for the rally to possibly extend into the Fibonacci level at 1.1375, followed by an uptrending Gann angle at 1.1389 and a 50% level at 1.1402.

Bearish Scenario

A sustained move under 1.1339 will signal the presence of sellers. This could trigger a break into the next uptrending Gann angle at 1.1314. This is the last potential support angle before the 1.1289 main bottom.

Taking out 1.1289 will reaffirm the downtrend with the December 14, 2018 main bottom at 1.1270 the next target.

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