EUR/USD Mid-Session Technical Analysis for March 22, 2019

Based on the early price action and the current price at 1.1298, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1287.
James Hyerczyk

The Euro is trading sharply lower on Friday shortly after the U.S. session opening. This puts it in a position to post its biggest loss in two weeks. Falling bond yields in response to weaker-than-expected German manufacturing survey data is helping to make the Euro a less-attractive investment.

Since March 7, the Euro had been trending higher as investors absorbed the European Central Bank’s lower growth forecasts for the Euro Zone, however, today’s data was a surprise for investors because it exposed weakness in the German economy, the Euro Zone’s economic powerhouse.

The IHS Markit’s flash composite Purchasing Managers’ Index measuring activity in German services and manufacturing, which together account for more than two-thirds of the economy, fell to 51.5, its lowest reading since June 2013.

Germany’s 10-year government bond yield was poised to turn negative for the first time since October 2016 and was last trading at 0 percent 0.3 percent higher at 96.71.

At 13:07 GMT, the EUR/USD is trading 1.1298, down 0.0077 or -0.68%.


Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower with the Forex pair currently in a position to post a potentially bearish closing price reversal top. A trade through 1.1448 will signal a resumption of the uptrend. A move under 1.1177 will change the main trend to down. Last week’s close was 1.1325.

The main range is 1.1570 to 1.1177. Its retracement zone at 1.1374 to 1.1420 is resistance. This zone is controlling the near-term direction of the EUR/USD.

The short-term range is 1.1177 to 1.1448. Its retracement zone at 1.1313 to 1.1281 is the primary downside target. This zone is currently being tested. Since the main trend is up, buyers could start to come in on the test of this zone.

Daily Technical Forecast

Based on the early price action and the current price at 1.1298, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1287.

Bullish Scenario

Holding 1.1287 is indicating the presence of buyers. If this creates enough upside momentum then look for a potential rally into the resistance cluster at 1.1313 to 1.1315. The latter is a potential trigger point for an acceleration to the upside with the first target a short-term pivot at 1.1369, followed closely by the main 50% level at 1.1374.

Bearish Scenario

A sustained move under 1.1287 will signal the presence of sellers. This is followed closely by the short-term Fibonacci level at 1.1281. This price is a potential trigger point for an acceleration into the next uptrending Gann angle at 1.1232.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.