EUR/USD Mid-Session Technical Analysis for July 17, 2019

The Euro is trading higher on Wednesday after hitting a one-week low against the U.S. Dollar earlier in the session. Despite the slight recovery, the single-currency is being weighed down by expectations of European Central Bank (ECB) monetary policy easing and investors’ preference for the higher-yielding U.S. currency.

In other news, the Commodity Futures Trading Commission said hedge funds topped up their net short positions on the Euro to $5.02 billion in the week to July 9 while staying neutral on the U.S. Dollar. Euro short positions increased only slightly, however, and remain close to their lowest since January.

At 12:43 GMT, the EUR/USD is trading 1.1211, up 0.0001 or +0.01%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on June 25 at 1.1413.

A trade through 1.1286 will signal a resumption of the uptrend, while a trade through 1.1193 will change the main trend to down. This could lead to a test of the next main bottom at 1.1181. If this bottom fails as support then look for the selling to possibly extend into the May 30 bottom at 1.1116 and the May 23 bottom at 1.1107.

The minor trend is down. This confirms the downside momentum.

The major support is the Fibonacci level at 1.1185.

On the upside, the first resistance is a minor pivot at 1.1240. The major resistance is a retracement zone at 1.1278 to 1.1318.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the long-term uptrending Gann angle at 1.1205.

Bullish Scenario

A sustained move over 1.1205 will indicate the presence of buyers. The first target angle comes in at 1.1223. Overtaking this angle could drive the market into the short-term pivot at 1.1240. This is followed by a potential resistance cluster at 1.1253.

Bearish Scenario

A sustained move under 1.1205 will signal the presence of sellers. This is the last support angle before the main bottom at 1.1193, the main Fibonacci level at 1.1185 and the main bottom at 1.1181. The latter is the trigger point for an acceleration to the downside with the next target angle coming in at 1.1156.