EUR/USD Mid-Session Technical Analysis for March 5, 2019

The Euro is trading lower on Tuesday as investors prepare for Thursday’s European Central Bank interest rate and monetary policy decisions.

Central bank policymakers are facing growing pressure on how to protect the Euro Zone economy from a protracted slowdown. Given the previously applied stimulus measures that failed to generate the desired results, the ECB is essentially out of bullets so they are going to have to be creative if new stimulus measures are called for.

Today’s weaker price action suggests investors expect the ECB to offer no surprises, which means investors should expect to see a dovish tone.

At 12:35 GMT, the EUR/USD is trading 1.1331, down 0.0009 or -0.08%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The main trend turned down on a trade through 1.1317 on Monday. Today’s inside move suggests investor indecision and impending volatility.

The short-term range is 1.1234 to 1.1420. Its retracement zone at 1.1327 to 1.1305 is currently being tested. This zone is support. It is also controlling the near-term direction of the EUR/USD.

The main range is 1.1514 to 1.1234. Its retracement zone at 1.1374 to 1.1407 is new resistance. It is controlling the longer-term direction of the Forex pair.

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 short-term 50% level at 1.1327.

Bullish Scenario

A sustained move over 1.1327 will signal the presence of buyers. If this creates enough upside momentum then look for a rally into the uptrending Gann angle at 1.1354.

Overtaking 1.1354 will indicate the buying is getting stronger with the next target the retracement zone at 1.1374 to 1.1407.

Bearish Scenario

A sustained move under 1.1327 will indicate the presence of sellers. This could trigger a break into 1.1305, followed closely by an uptrending Gann angle at 1.1294. This is a potential trigger point for an acceleration to the downside with the next target angle coming in at 1.1264. This is the last potential support angle before the 1.1234 main bottom.