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EUR/USD Mid-Session Technical Analysis for June 8, 2018

By:
James Hyerczyk
Published: Jun 8, 2018, 10:11 UTC

Based on the current price at 1.1765, the direction of the EUR/USD is likely to be determined by trader reaction to the 50% level at 1.1753.

EUR/USD

The EUR/USD is trading lower shortly before the U.S. opening. The move is being fueled by profit-taking in the Euro, and not by a stronger dollar.  U.S. Treasury yields are trading lower. This makes the dollar a less-desirable investment.

Higher U.S. Treasury yields, coupled with profit-taking in the Euro, would’ve sent the EUR/USD sharply lower.

At 0958 GMT, the EUR/USD is trading 1.1765, down 0.0035 or -0.30%.

EURUSD
Daily EUR/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. Yes, despite the seven session rally, the trend never turned to up. Momentum is trending higher, however.

The minor trend is up. This is why the momentum is trending higher. Today’s early sell-off made 1.1841 a new minor top. A trade through 1.1841 will signal a resumption of the minor trend. A move through 1.1652 will change the minor trend to down.

The main range is 1.1997 to 1.1510. The EUR/USD is currently testing its retracement zone at 1.1753 to 1.1811. This zone is controlling the near-term direction of the Forex pair.

The minor range is 1.1510 to 1.1841. If the selling pressure continues then its retracement zone at 1.1676 to 1.1636 will become the primary downside target.

Daily Swing Chart Technical Forecast

Based on the current price at 1.1765, the direction of the EUR/USD is likely to be determined by trader reaction to the 50% level at 1.1753.

A sustained move over 1.1753 will signal the presence of buyers. This could trigger a retest of the Fib level at 1.1811, followed by the minor top at 1.1.841.

A sustained move under 1.1753 will indicate the presence of sellers. This could trigger an acceleration to the downside with 1.1676 the next likely downside target.

The current chart pattern indicates the EUR/USD may have to pull back into 1.1676 to 1.1636 over the near-term in order to give counter-trend buyers an opportunity to form a secondary higher bottom.

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.

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