James Hyerczyk
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The Euro is trading higher on Monday, shortly before the U.S. opening. The single-currency is following through to the upside, following Friday’s closing price reversal bottom and subsequent confirmation earlier today. This could trigger a minimum 2 to 3 day rally.

At 0921 GMT, the EUR/USD is trading 1.1700, up 0.0013 or +0.12%.

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Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.1791 will signal a resumption of the uptrend. A trade through 1.1613 will negate the closing price reversal bottom and shift momentum to the downside.

The main range is 1.1851 to 1.1509. Its retracement zone at 1.1680 to 1.1720 is currently being tested. This zone is controlling the near-term direction of the EUR/USD. The short-term range is 1.1509 to 1.1791. Its retracement zone at 1.1650 to 1.1617 is support. The lower or Fibonacci level of this range stopped the selling on Friday at 1.1613, triggering the closing price reversal bottom.


Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the support cluster at 1.1679 to 1.1680. This is being formed by a combination of an uptrending Gann angle and a 50% level.

A sustained move over 1.1680 will indicate the presence of buyers. If this generates enough upside momentum then look for the rally to extend into the Fib level at 1.1720, followed by the downtrending Gann angle at 1.1741. This angle is a potential trigger point for an acceleration into the main top at 1.1791, followed closely by the downtrending Gann angle at 1.1796. The latter is the last potential resistance angle before the 1.1851 main top.

A sustained move under 1.1679 will signal the presence of sellers. This could trigger a break into a 50% level at 1.1650, followed by the 50% level at 1.1617 and the reversal bottom at 1.1613.

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