EUR/USD Mid-Session Technical Analysis for July 9, 2018Based on the current price at 1.1777 and the earlier price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 1.1766.
The Euro is trading higher shortly after the U.S. opening on Monday as shorts continue to cover and new buyers continue to come in following an easing of tensions over Italy late last month and strong economic data from Germany last week. The single-currency is also being supported by the broad-based weakness in the U.S. Dollar.
At 1110 GMT, the EUR/USD is trading 1.1777, up 0.0033 or +0.28%.
The Greenback has been under pressure since end of the quarter position-balancing drove it to a one-year high on June 29. Traders are also reacting to Friday’s U.S. jobs report that showed the economy added more jobs than expected, however, wage growth came in below expectations. This news encouraged some futures investors to lower expectations for a fourth rate hike by the Fed later this year.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The swing chart indicates there is little resistance before the June 14 main top at 1.1851 so this is our next major target.
Today’s session begins with the EUR/USD in the window of time for a closing price reversal top. Therefore, we’ll start looking for signs of increased selling pressure.
The upside bias is also getting stronger with the EUR/USD trading on the strong side of a major 50% level at 1.1753 and a short-term retracement zone at 1.1720 to 1.1680. These levels are new support.
Daily Technical Forecast
Based on the current price at 1.1777 and the earlier price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 1.1766.
A sustained move over 1.1766 will indicate the presence of buyers. If this generates enough upside momentum then look for the rally to extend into the next downtrending Gann angle at 1.1809. This is the last potential resistance angle before the 1.1851 main top.
A sustained move under 1.1766 will signal the presence of sellers. This could lead to a retest of 1.1753 and an uptrending Gann angle at 1.1749. The latter provided intraday support earlier today.
If 1.1749 fails as support then look for a further break into 1.1720. Taking out this level could fuel an acceleration to the downside with 1.1680 the next target.
Additionally, now that the EUR/USD has posted a higher-high, Friday’s close at 1.1744 becomes important. Crossing to the weak side of this price will indicate the selling is greater than the buying at current price levels.