EUR/USD Mid-Session Technical Analysis for June 4, 2019

The Euro is trading lower on Tuesday after touching its highest level since April 18 earlier in the session. The single-currency is receiving pressure from multiple factors today. A rise in Treasury yields is helping to boost demand for the U.S. Dollar as well a general “risk on” tone in U.S. stock markets. Lower-than-expected Euro Zone inflation in May also encouraged Euro investors to book profits after the earlier surge in price.

At 13:30 GMT, the EUR/USD is trading 1.1235, down 0.0006 or -0.05%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out previous main tops at 1.1264 and 1.1265.

Taking out 1.1277 could extend the rally into the next main top at 1.1324. The main trend will change to down on a move through 1.1116. However, this is highly unlikely today. Nonetheless, due to the steep rally we could see a closing price reversal top if the EUR/USD settles under 1.1241.

The main range is 1.1448 to 1.1107. Its retracement zone is 1.1278 to 1.1318. Today’s high at 1.1277 fell just short of an exact test of the lower or 50% level. On the downside, the major support remains the Fibonacci level 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 yesterday’s close at 1.1241.

Bearish Scenario

A sustained move under 1.1241 will indicate the presence of sellers. If this move creates enough downside momentum then look for a potential pullback into the support cluster at 1.1187 to 1.1185.

Bullish Scenario

A sustained move over 1.1241 will signal the presence of buyers. If this move generates enough upside momentum then look for a potential retest of the resistance cluster at 1.1267 to 1.1278. Overtaking the 50% level at 1.1278 will indicate the buying is getting stronger with the next targets a downtrending Gann angle at 1.1313, followed by a Fibonacci level at 1.1318.