EUR/USD Mid-Session Technical Analysis for June 29, 2018

The Euro is trading sharply higher on Friday shortly before the U.S. opening. It seems that investors are happy that a deal on migration has been reached. Despite the strong performance the Euro is still trading lower for the week. Last week, it closed at 1.1658. For the first half of the year, it’s down about 3.50%.

At 1039 GMT, the EUR/USD is trading 1.1642, up 0.0072 or +0.63%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1731 will change the trend to up. A move through 1.1527 will be the first sign of weakness. A trade through 1.1509 will reaffirm the downtrend.

The short-term range is 1.1509 to 1.1721. Its retracement zone at 1.1615 to 1.1590 is support.

The upside resistance targets are a 50% level at 1.1681, a Fibonacci level at 1.1720 and another 50% level at 1.1756. The Fib level stopped the rally earlier in the week at 1.1721.

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to a downtrending Gann angle 1.1631 and an uptrending Gann angle at 1.1629.

A sustained move over 1.1631 will signal the presence of buyers. If this generates enough upside momentum then look for a retest of the downtrending Gann angle at 1.1661. This angle stopped the rally earlier in the session.

Taking out 1.1661 could trigger an acceleration into the 50% level at 1.1681 and the downtrending Gann angle at 1.1691. This is also the trigger point for another potential surge into 1.1720 to 1.1721.

A sustained move under 1.1629 will indicate the presence of sellers. This could lead to a quick test of 1.1615.

Breaking through 1.1615 could trigger a move into 1.1590, followed by an uptrending Gann angle at 1.1569. This angle provided support earlier today.

Another way to look at the market today, look for the strong upside bias to continue on a sustained move over 1.1661 and for a downside bias to develop on a sustained move under 1.1629.