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EUR/USD Mid-Session Technical Analysis for March 1, 2019

By:
James Hyerczyk
Published: Mar 1, 2019, 11:28 UTC

Based on the early price action, the direction of the EUR/USD on Friday is likely to be determined by trader reaction to the 50% level at 1.1374 and the uptrending Gann angle at 1.1367.

EUR/USD

The Euro is trading slightly higher on Friday following yesterday’s steep sell-off. On Thursday, the selling was driven by a better-than-expected U.S. GDP report. This report drove up the odds of at least one rate hike by the Fed in 2019. Treasury yields surged on the news, making the U.S. Dollar a more attractive investment.

At 11:13 GMT, the EUR/USD is trading 1.1374, up 0.0004 or +0.04%.

Today, investors will get the opportunity to react to the latest U.S. data on Core PCE Prices, Personal Spending, Personal Income and Consumer Sentiment. The most important report will be the ISM Manufacturing PMI. It is expected to come in at 55.6, down from 56.6.

EURUSD
Daily EUR/USD

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.1420 will signal a resumption of the uptrend. A move through 1.1317 will change the main trend to down.

The main range is 1.1514 to 1.1234. Its retracement zone at 1.1374 to 1.1407 is controlling the direction of the EUR/USD. Holding below this zone will give the EUR/USD a downside bias.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD on Friday is likely to be determined by trader reaction to the 50% level at 1.1374 and the uptrending Gann angle at 1.1367.

Bullish Scenario

A sustained move over 1.1374 will indicate the presence of buyers. If this move can generate enough upside momentum then we could see a retest of a resistance cluster at 1.1407 to 1.1409.

Bearish Scenario

A sustained move under 1.1374 will signal the presence of sellers, however, the trigger point for an acceleration to the downside is the uptrending Gann angle at 1.1367. Taking out this angle with conviction could lead to a test of the uptrending Gann angle at 1.1334. Since the main trend is up, look for buyers on the first test of this angle. If it fails then look for a test of the main bottom at 1.1317. Taking out this bottom will change the main trend to down.

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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