EUR/USD Mid-Session Technical Analysis for July 30, 2018Based on the current price at 1.1685, the direction of the EUR/USD is likely to be determined by trader reaction to the short-term 50% level at 1.1686.
The Euro is trading higher shortly after the U.S. opening on Monday. German Preliminary Consumer Price Inflation (CPI) came in at 0.3 percent. This was below the 0.4 percent estimate, but higher than the previous reading of 0.1 percent. Spanish Flash CPI was 2.2%, slightly below the 2.3% estimate and previous reading.
At 1216 GMT, the EUR/USD is trading 1.1685, up 0.0027 or +0.23%.
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 at 1.1751 on July 23.
The minor trend is down. This supports the downtrending momentum. A trade through 1.1621 will indicate the selling is getting stronger.
The short-term range is 1.1751 to 1.1621. Its retracement zone at 1.1686 to 1.1701 is currently being tested. It’s controlling the near-term direction of the EUR/USD.
Daily Technical Forecast
Based on the current price at 1.1685, the direction of the EUR/USD is likely to be determined by trader reaction to the short-term 50% level at 1.1686.
A sustained move under 1.1686 will signal the presence of sellers. If this generates enough downside momentum then look for a possible break into the nearest uptrending Gann angle at 1.1645.
A sustained move over 1.1686 will indicate the presence of buyers. If this move attracts buyers then look for an extension of the rally into the short-term Fibonacci level at 1.1701, followed by the long-term downtrending Gann angle at 1.1716.
We could see sellers on the first test of 1.1716, but if it fails then look for an acceleration to the upside.