EUR/USD Mid-Session Technical Analysis for March 26, 2019

Based on the early trade, the direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to the 50% level at 1.1313 and the downtrending Gann angle at 1.1305.
James Hyerczyk
EUR/USD

The Euro is trading nearly flat on Tuesday as investors await fresh news about Brexit and a slew of U.S. economic data. Traders are also saying that the single-currency is being supported by economic surveys showing tentative signs of recovery in the Euro Zone economy but warned that signals from the fixed income markets could continue to be the source of concerns.

At 12:23 GMT, the EUR/USD is trading 1.1304, down 0.0011 or -0.09%.

Traders are saying a stronger-than-forecast German business confidence survey on Monday was buoying the single currency, but German 10-year bund yields remained below zero and that worried global stock markets despite some steadying on Tuesday.

Daily EUR/USD

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is currently neutral with the EUR/USD straddling a retracement zone. A move through 1.1448 will signal a resumption of the uptrend, while a trade through 1.1177 will change the main trend to down.

The main range is 1.1570 to 1.1177. Its retracement zone at 1.1374 to 1.1420 is resistance.

The short-term range is 1.1177 to 1.1448. Its retracement zone at 1.1313 to 1.1281 is currently being tested. This zone is controlling the near-term direction of the Forex pair.

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to the 50% level at 1.1313 and the downtrending Gann angle at 1.1305.

Bullish Scenario

Overtaking the Gann angles at 1.1305 and 1.1307 will indicate the presence of buyers. However, the trigger point for a break out to the upside is the 50% level at 1.1313. The daily chart indicates we could see an acceleration to the upside with the main 50% level at 1.1374 the primary upside target.

Bearish Scenario

A sustained move under the Gann angle at 1.1305 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to extend into the Fibonacci level at 1.1281. This price is also the trigger point for an acceleration to the downside with the next target angle coming in at 1.1242.

Basically, we’re looking for an upside bias to develop on a sustained move over the 50% level at 1.1313 and for a downside bias to develop on a sustained move under the Fibonacci level at 1.1281.

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