EUR/USD Mid-Session Technical Analysis for July 2, 2019

The Euro is trading slightly better against the U.S. Dollar on Tuesday after a successful test of retracement level support. The single-currency received a boost earlier today after a media report suggested that European Central Bank policymakers were in no rush to cut interest rates at a July policy meeting. However, these slight gains may have been offset by the Trump administration’s threat of new tariffs on $4 billion of additional European Union goods.

At 12:47 GMT, the EUR/USD is trading 1.1297, up 0.0012 or +0.10%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower following Monday’s confirmation of the June 25 closing price reversal top.

A trade through 1.1413 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down if 1.1181 fails as support.

The main range is 1.1448 to 1.1107. Its retracement zone at 1.1318 to 1.1278 is controlling the longer-term direction of the EUR/USD.

The short-term range is 1.1181 to 1.1413. Its retracement zone at 1.1297 to 1.1270 provided support earlier today.

Daily Technical Forecast

Based on the earlier price action and the current price at 1.1297, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the short-term 50% level at 1.1297.

Bullish Scenario

A sustained move over 1.1297 will indicate the presence of buyers. The first upside target is the downtrending Gann angle at 1.1313, followed by the main Fibonacci level at 1.1318. The latter is the trigger point for an acceleration to the upside with the next major target angle coming in at 1.1363.

Bearish Scenario

A sustained move under 1.1297 could lead to a retest of the support cluster at 1.1281 to 1.1278. This is followed closely by today intraday low at 1.1275 and a short-term Fibonacci level at 1.270.

The trigger point for an acceleration to the downside is 1.1270. If this move brings in the sellers then the pressure could extend into the uptrending Gann angle at 1.1231.

Overview

Basically rangebound between 1.1270 and 1.1318. However, look for an upside bias to begin on a sustained move over 1.1318 and for a downside bias to start on a sustained move under 1.1270.