EUR/USD Mid-Session Technical Analysis for March 13, 2019

The Euro is trading slightly higher on Wednesday, shortly before the U.S. opening. Uncertainty over Brexit may be keeping a lid on the single-currency. Traders are also awaiting the release of reports on Durable Goods, Producer Inflation and Construction Spending.

On Tuesday, the Euro rallied in response to a mixed U.S. consumer inflation report, which showed consumer prices rose for the first time in four months in February. However, the pace of the increase was modest, resulting in the smallest annual gain in nearly 2-1/2 years. The news likely means the U.S. Federal Reserve will continue its-wait-and-see approach to further monetary policy tightening this year. This is likely leading Euro traders to lighten up a little on the short-side.

At 09:42 GMT, the EUR/USD is trading 1.1295, up 0.0007 or +0.06%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1176 will signal a resumption of the downtrend. The main trend will change to up on a trade through 1.1420.

The short-term range is 1.1420 to 1.1176. Its retracement zone at 1.1298 to 1.1327 is the primary upside target. The lower or 50% level of this range is currently being tested. Yesterday’s rally stopped on a test of this level.

Since the main trend is down, sellers are likely to continue to come in on a test of this retracement zone. Trader reaction to this area will determine if a secondary lower top forms or if the rally continues beyond 1.1327.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the 50% level at 1.1298.

Bullish Scenario

Overtaking and sustaining a rally over 1.1298 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the Fibonacci level at 1.1327, followed by a downtrending Gann angle at 1.1330.

Sellers could re-emerge on a test of 1.1327 to 1.1330, but overtaking the latter is likely to trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 1.1298 will signal the presence of sellers. If this creates enough downside momentum then look for a potential break into an uptrending Gann angle at 1.1256. Taking out this angle will indicate the selling is getting stronger.