EUR/USD Mid-Session Technical Analysis for March 12, 2019

The Euro is trading higher as profit-taking and position-squaring continued following last week’s announcement of fresh stimulus from the European Central Bank. Some traders are saying that the single-currency is being helped by renewed hopes for a U.S.-China trade detail that could end the year-long trade dispute and help stabilize the global economy. New developments over Brexit could also be providing support.

At 12:51 GMT, the EUR/USD is trading 1.1279, up 0.0034 or +0.31%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The EUR/USD is not in a position to change the main trend to up, but it is in a position to complete a short-term 50% to 61.8% retracement. A trade through 1.1176 will signal a resumption of the downtrend.

The short-term range is 1.1420 to 1.1176. Its retracement zone at 1.1298 to 1.1327 is the primary upside target. Since the main trend is down, sellers are likely to show up on a test of this area.

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 the downtrending Gann angle at 1.1260.

Bullish Scenario

A sustained move over 1.1260 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into the 50% level at 1.1298. Watch for sellers on the first test of this angle.

Overcoming 1.1298 will indicate the buying is getting stronger. This could trigger a spike to the upside with the next target the Fibonacci level at 1.1327. This is followed closely by a downtrending Gann angle at 1.1340.

Bearish Scenario

A sustained move under 1.1260 will signal the return of sellers. The first downside target is an uptrending Gann angle at 1.1236. Aggressive counter-trend buyers could come in on a test of this angle. If it fails then look for the selling to possibly extend into the next uptrending Gann angle at 1.1206.