EUR/USD Mid-Session Technical Analysis for January 14, 2019Based on the early price action, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to a downtrending Gann angle at 1.1490 and an uptrending Gann angle at 1.1449.
The Euro is trading slightly lower shortly before the U.S. opening, however, but intraday momentum appears to be shifting to the upside after early session weakness. The single-currency was pressured on the opening as investors reacted to concerns over a slowdown in the global economy. Helping to underpin the Euro is the notion that the Fed may pause in its tightening cycle.
At 1150 GMT, the EUR/USD is trading 1.1471, up 0.0001 or +0.01%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the potentially bearish closing price reversal top on January 10 and its subsequent confirmation on January 11.
A trade through 1.1570 will signal a resumption of the uptrend. The main trend will change to down on a trade through 1.1309.
On the upside, the resistance is a retracement zone at 1.1516 to 1.1587. This zone stopped the rally last week at 1.1570.
The main range is 1.1309 to 1.1570. Its retracement zone at 1.1440 to 1.1409 is the primary downside target. Since the main trend is up, look for buyers on a test of this area.
Daily Technical Forecast
Based on the early price action, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to a downtrending Gann angle at 1.1490 and an uptrending Gann angle at 1.1449.
A sustained move over 1.1490 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into the 50% level at 1.1516, followed closely by a downtrending Gann angle at 1.1530.
The inability to break through 1.1490 will be the first sign of weakness, however, a failure to hold the uptrending Gann angle at 1.1449 will signal that the selling is getting stronger. This could lead to a test of the 50% level at 1.1440.
If selling pressure increases on a move through 1.1440 then look for a potential break into the Fibonacci level at 1.1409.