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EUR/USD Mid-Session Technical Analysis for January 8, 2020

By:
James Hyerczyk
Published: Jan 8, 2020, 14:21 UTC

Based on the early price action and the current price at 1.1121, the direction of the EUR/USD is likely to be determined by trader reaction to the uptrending Gann angle at 1.1121.

EUR/USD

The Euro is trading lower against the U.S. Dollar on Wednesday in response to weak data from the Euro Zone and stronger-than-expected U.S. economic news. The single-currency seems to have been immune to the events overnight in the Middle East, where reportedly, Iran launched a missile attack at an Iraqi airbase that housed U.S. troops.

At 13:55 GMT, the EUR/USD is trading 1.1121, down 0.0026 or -0.23%.

Contributing to the loss in the Euro was a report from Germany that the country’s industrial orders fell unexpectedly in November on weak foreign demand and a lack of major contracts.

Europe’s largest economy has been struggling with slowing factory activity over the past due to global trade and political ructions.

In other news, the U.S. Dollar strengthened after a report showed that private payroll growth ended 2019 on a strong note, with companies adding 202,000 positions in December in another sign of a healthy labor market, according to ADP and Moody’s Analytics. Traders were looking for growth of 150,000 jobs.

EURUSD
Daily EUR/USD

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 1.1067 will change the main trend to down. A move through 1.1313 will signal a resumption of the uptrend.

The minor trend is down. This trend was reaffirmed when sellers took out the last minor bottom at 1.1125. The move further confirmed the shift in momentum to down. A trade through 1.1206 will change the minor trend to up.

On the upside, retracement level resistance comes in at 1.1146, 1.1185 and 1.1209.

On the downside, the next potential support zone comes in at 1.1095 to 1.1044. We could see a technical bounce on the initial test of this zone.

Daily Technical Forecast

Based on the early price action and the current price at 1.1121, the direction of the EUR/USD is likely to be determined by trader reaction to the uptrending Gann angle at 1.1121.

Bearish Scenario

A sustained move under 1.1121 will indicate the presence of sellers. This could trigger a break into the main 50% level at 1.1095. If this level fails then look for the selling to possibly extend into the main bottom at 1.1067.

Taking out 1.1067 will change the main trend to down. This could trigger a further break into another uptrending Gann angle at 1.1051, followed closely by the main Fibonacci level at 1.1044.

Bullish Scenario

Holding 1.1121 as support could trigger a rebound into 1.1146. Overcoming this level with strong volume could create the upside momentum needed to challenge the long-term Fibonacci level at 1.1185.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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