EUR/USD Mid-Session Technical Analysis for July 30, 2019

The Euro is inching higher on Tuesday as traders continue to consolidate their positions ahead of Wednesday’s widely expected Federal Reserve 25-basis point rate cut. The early trade is probably being generated by computer “bots” with most of the major players on the sidelines. We could see some real volatility at 12:30 GMT with the release of the U.S. Core PCE Price index. It is expected to come in at 0.2%. A stronger number could be bearish for the Euro.

At 11:35 GMT, the EUR/USD is trading 1.1150, up 0.0005 or +0.05%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, downside momentum has slowed since the formation of the closing price reversal bottom at 1.1101 on July 25. A trade through this level will negate the chart pattern and signal a resumption of the downtrend. The main trend will change to up on a trade through 1.1282.

The minor trend is also down. A trade through 1.1188 will confirm the reversal bottom. This will shift momentum to the upside.

The minor range is 1.1101 to 1.1188. Its 50% level or pivot at 1.1144 is controlling the direction of the EUR/USD today.

The nearest resistance is the long-term Fibonacci level at 1.1185.

Daily Technical Forecast

Based on the early price action and the current price at 1.1150, the direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to the pivot at 1.1144 and the downtrending Gann angle at 1.1142.

Bullish Scenario

A sustained move over 1.1144 will indicate the presence of buyers. This could trigger a quick pop into a downtrending Gann angle at 1.1163. Sellers could come in on the first test of this angle. Overcoming it, however, could trigger an acceleration into the main Fibonacci level at 1.1185.

Bearish Scenario

A sustained move under 1.1142 will signal the presence of sellers. This could cause the EUR/USD to drift lower toward 1.1101.