EUR/USD Mid-Session Technical Analysis for January 21, 2019Based on the earlier price action, the direction of the EUR/USD into the close is likely to be determined by trader reaction to the uptrending Gann angle at 1.1369.
The Euro is trading flat to higher against the U.S. Dollar on Monday while hovering around its two-week low. Volume and volatility are light due to a U.S. bank holiday. Both currencies are reacting to concerns about weakening global growth and data showing China’s economy slowed sharply in 2018. This is helping to generate a two-sided trade. Overall, Monday’s inside move is suggesting investor indecision and impending volatility. On Tuesday, we’re likely to see the true reaction to issues such as the U.S.-China trade dispute, weak China GDP and the on-going government shutdown.
At 0544 GMT, the EUR/USD is trading 1.1368, up 0.0006 or +0.06%.
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 closing price reversal top on January 10. A trade through 1.1350 will indicate the selling is getting stronger. The next target is the January 3 main bottom at 1.1309. Taking out this level will change the main trend to down. The EUR/USD is also down seven sessions from the last main top which puts it inside the window of time for a closing price reversal bottom.
Daily Technical Forecast
Based on the earlier price action, the direction of the EUR/USD into the close is likely to be determined by trader reaction to the uptrending Gann angle at 1.1369.
A sustained move over 1.1369 will indicate the presence of buyers. If there is some late session momentum the EUR/USD could surge to the high of the day at 1.1391 with the next target the main Fibonacci level at 1.1409.
A sustained move under 1.1369 will signal the presence of sellers. This could trigger a break into Friday’s low at 1.1350. If this price fails then look for the selling to possibly extend into the next uptrending Gann angle at 1.1339. This is the last potential support angle before the 1.1309 main bottom.