EUR/USD Mid-Session Technical Analysis for March 4, 2019

The Euro is trading lower on Monday. Firmer U.S. Treasury yields are helping to pressure the single currency by making the U.S. Dollar a more attractive investment. The interest rate differential is also in play today with the gap between benchmark 10-year yields in the United States and Germany widening to near a three-month high of 257 basis points, compared with 240 basis points at the start of the year.

At 12:08 GMT, the EUR/USD is trading 1.1332, down 0.033 or -0.29%.

Daily Technical Analysis

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

The main range is 1.1514 to 1.1234. Its retracement zone at 1.1374 to 1.1407 is controlling the direction of the Forex pair. Trading below this zone is helping to support a downside bias. This zone is also new resistance.

The short-term range is 1.1234 to 1.1420. Its retracement zone at 1.1327 to 1.1305 is the primary downside target. Buyers may show up on test of this zone. They’ll be trying to create a secondary higher bottom. If this zone fails as support then look for a potential acceleration to the downside.

Daily Technical Forecast

Based on the early price action and the current price at 1.1332, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the 50% level at 1.1327.

Bullish Scenario

A sustained move over 1.1327 will indicate the presence of buyers. The first target is an uptrending Gann angle at 1.1344. Overcoming this angle will indicate the buying is getting stronger. If this generates enough upside momentum then look for a potential acceleration into a downtrending Gann angle at 1.1404, followed by a Fibonacci level at 1.1407.

Bearish Scenario

Taking out 1.1327 and sustaining the break will indicate the selling is getting stronger. This could trigger an acceleration into the main bottom at 1.1317, followed by the short-term Fib level at 1.1305 and an uptrending Gann angle at 1.1289.