Advertisement
Advertisement

EUR/USD Mid-Session Technical Analysis for June 14, 2019

By:
James Hyerczyk
Published: Jun 14, 2019, 13:41 UTC

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 resistance cluster at 1.1267 to 1.1268. A sustained move under 1.1267 will indicate the presence of sellers. The first target is the 50% level at 1.1227.

EUR/USD

The Euro is trading sharply lower against the U.S. Dollar despite weaker-than-expected U.S. retail sales data. The weakness is being fueled by a drop in Germany’s 10-year bond yield which hit a record low on Friday and as Spanish yields dropped below 0.5% for the first time. The catalyst behind the decline in yields is weak data from China which fanned concerns about the impact of the trade impasse between the United States and China and expectations of rate cuts by the major central banks.

At 13:25 GMT, the EUR/USD is trading 1.1238, down 0.0038 or -0.34%.

EURUSD
Daily EUR/USD

Daily Technical Analysis

The main trend is up according to the daily swing chart, but momentum has been trending lower since Wednesday’s closing price reversal top at 1.1348.

A trade through 1.1204 will change the main trend to down, while a move through 1.1348 will negate the closing price reversal top and signal a resumption of the uptrend.

The nearest resistance is the retracement zone at 1.1278 to 1.1318. This zone is also controlling the near-term direction of the EUR/USD. Trading below it is contributing to today’s downside bias.

The short-term range is 1.1107 to 1.1348. Its retracement zone at 1.1227 to 1.1199 is the primary downside target. Since the main trend is up, buyers are likely to come in on a test of this area. It is followed by major Fibonacci support at 1.1185.

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 resistance cluster at 1.1267 to 1.1268.

Bearish Scenario

A sustained move under 1.1267 will indicate the presence of sellers. The first target is the 50% level at 1.1227. Since the main trend is up, look for buyers on the first test of this level. If it fails then look for the selling to possibly extend into the main bottom at 1.1204, followed closely by the Fibonacci level at 1.1199. An additional target is a support cluster at 1.1187 to 1.1185.

Bullish Scenario

Overtaking 1.1268 will signal the presence of buyers with the next target the 50% level at 1.1278. This is a potential trigger point for a move into the downtrending Gann angle at 1.1308.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement