EUR/USD Mid-Session Technical Analysis for June 27, 2018

The Euro is trading slightly better early in the session on Wednesday. The single-currency is trading inside yesterday’s range which suggests investor indecision and impending volatility.

At 0827 GMT, the EUR/USD is at 1.1653, up 0.0005 or +0.02%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. Yesterday, the Forex pair formed a minor reversal top. If confirmed by a move through 1.1635, the momentum will shift back to the downside.

A trade through 1.1721 will negate the reversal top and indicate the buying is getting stronger.

The major resistance is a pair of 50% levels at 1.1681 and 1.1756. Inside this zone is a short-term Fibonacci level at 1.1720. This level stopped the rally on Tuesday.

Since the main trend is down, sellers are likely to continue to come in on a test of the retracement zone. They are trying to form a secondary lower top. Taking out 1.1756 will mean the buyers are taking control.

The short-term range is 1.1509 to 1.1721. If the selling pressure continues then look for a test of its retracement zone at 1.1615 to 1.1590. Aggressive counter-trend buyers could come in on a test of this zone. They will be trying to form a potentially bullish secondary higher bottom. If 1.1590 fails to hold then it will mean they failed to do so.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to a pair of Gann angles at 1.1669 and 1.1671.

A sustained move under 1.1669 will indicate the presence of sellers. If this generates enough downside momentum then look for an acceleration into 1.1615, followed by a support cluster at 1.1590 – 1.1589.

Overcoming and sustaining a rally over 1.1671 will signal the presence of buyers. This could lead to a quick test of 1.1681.

The 50% level at 1.1681 is the trigger point for an acceleration to the upside with 1.1720-1.1721 the next target.

Overtaking 1.1721 will indicate the buying is getting stronger with a resistance cluster at 1.1756 to 1.1761 the next likely target area.

Look for traders to play the pair of retracement zones at 1.1615 to 1.1590 and 1.1680 to 1.1720 over the near-term until they decide which way they want to take the EUR/USD.