EUR/USD Mid-Session Technical Analysis for January 3, 2019

The Euro is inching higher on Thursday after hitting its lowest price since December 17 earlier in the session. Traders are showing little response to the steep sell-off in the U.S. equity markets or the overnight “flash crash” in the Pacific currency markets.

Traders will get the opportunity to react to the U.S. Challenger Job Cuts report, ADP Non-Farm Employment Change and Weekly Unemployment Claims. The major report is ISM Manufacturing PMI, due to be released at 1500 GMT. It is expected to come in at 57.3, down from 59.3 last month.

At 1320 GMT, the EUR/USD is trading 1.1341, down 0.0001 or -0.01%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Wednesday when sellers took out the previous main bottom at 1.1343.

The market is trading inside a major retracement zone bounded by 1.1447 to 1.1185.

The main range is 1.1216 to 1.1586. The EUR/USD is trading on the weak side of its retracement zone at 1.1357 to 1.1401. This move is contributing to the downside bias. These levels are new resistance.

Daily Swing Chart Technical Forecast

Based on the current price at 1.1346, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the main Fibonacci level at 1.1357.

Bullish Scenario

Overtaking and sustaining a rally over 1.1357 will indicate the presence of buyers. The first target is today’s intraday high at 1.1384. Taking out this high could trigger a further rally into the main 50% level at 1.1401.

Bearish Scenario

A sustained move under 1.1357 will signal the presence of sellers. Taking out today’s intraday low at 1.1309 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the main bottom at 1.1270 the next target. This is followed closely by another main bottom at 1.1267.