EUR/USD Mid-Session Technical Analysis for January 8, 2019

The price action the past three weeks indicates that the direction of the EUR/USD over the near-term will be determined by trader reaction to 1.1419 to 1.1467. The price action today and the current price at 1.1459 indicates that trader reaction to 1.1467 will determine the direction of the EUR/USD the rest of the session.
James Hyerczyk
EUR/USD
EUR/USD

The Euro is trading lower after giving back earlier gains. The selling was initially fueled by increased demand for risky assets and rising U.S. Treasury yields. Later in the session, the single-currency fell even further as the Euro Zone economy showed more signs of slowing. According to a report, German Industrial Output for the third straight month helped to weaken the Euro.

At 1229 GMT, the EUR/USD is trading 1.1459, down 0.0015 or -0.13%.

Although the Euro has recovered some of its losses, the weakness underscored concerns about a slowdown in the Euro Zone economy.

Daily EUR/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 1.1497 will change the main trend to up. A move through the November 7 top at 1.1501 could trigger an acceleration to the upside.

A trade through 1.1309 will negate a closing price reversal bottom and also trigger a resumption of the downtrend.

The major retracement zone is 1.1447 to 1.1185. This zone is controlling the longer-term direction of the EUR/USD.

The main range is 1.1622 to 1.1216. Its 50% to 61.8% retracement zone is 1.1419 to 1.1467. This zone is straddling the major 50% level at 1.1447.

Daily Swing Chart Technical Forecast

The price action the past three weeks indicates that the direction of the EUR/USD over the near-term will be determined by trader reaction to 1.1419 to 1.1467.

The price action today and the current price at 1.1459 indicates that trader reaction to 1.1467 will determine the direction of the EUR/USD the rest of the session.

Bullish Scenario

Overtaking and sustaining a move over 1.1467 will indicate the presence of buyers. If this move can generate enough upside momentum then look for buyers to make a run at 1.1497 then 1.1501. Taking out the latter could trigger an acceleration to the upside with the next target top coming in at 1.1555.

Bearish Scenario

A sustained move under 1.1467 will signal the presence of sellers. This could lead to a labored break with the first target 1.1447, followed by 1.1419.

Look for an acceleration to the downside if 1.1419 fails as support.

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