EUR/USD Mid-Session Technical Analysis for July 10, 2018

The Euro is under pressure on Tuesday, driven lower by a stronger U.S. Dollar and increased appetite for risk. U.S. Treasury yields are on the rise again, highlighting the divergence between the central bank policies of the U.S. Federal Reserve and the European Central Bank. This is helping to make the U.S. Dollar a more attractive investment.

At 1156 GMT, the EUR/USD is trading 1.1707, down 0.0043 or -0.35%.

Traders are also reacting to a softening of the trade tension between the United States and its trading partners, China and the European Union.

Daily Technical Analysis

The main trend is up according to the daily swing chart. It turned up last Friday when buyers took out the swing top at 1.1721. Today’s break below this top is an early sign of weakness.

A trade through 1.1792 will signal a resumption of the uptrend with 1.1851 the next likely target top.

The minor trend is up, but a new minor top was formed at 1.1792.

On the upside a Fibonacci level at 1.1720 and a 50% level at 1.1753 are resistance.

On the downside, potential support are a 50% level at 1.1681, a 50% level at 1.1660 and a Fibonacci level at 1.1628.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the day is likely to be determined by trader reaction to the Fib level at 1.1720.

A sustained move under 1.1720 will indicate the presence of sellers. This could lead to a break into 1.1681, followed by 1.1660, an uptrending Gann angle at 1.1639 and 1.1628.

The retracement zone at 1.1660 to 1.1628 is the primary downside target. Since the main trend is up, buyers may step in on a test of this area.

A sustained move over 1.1720 will signal the presence of buyers. This could lead to a test of 1.1753, followed closely by a downtrending Gann angle at 1.1761. This angle provided resistance earlier today.

Overcoming 1.1761 and an uptrending Gann angle at 1.1769 will put the EUR/USD in a bullish position.