EUR/USD Mid-Session Technical Analysis for March 6, 2019

The Euro is trading relatively flat-to-lower on Wednesday on light volume ahead of tomorrow’s European Central Bank (ECB) interest rate and monetary policy decisions. The ECB is widely expected to leave interest rates unchanged, but traders are more interested in what they will have to say about providing stimulus to spark a recovery in the struggling Euro Zone economy.

At 13:12 GMT, the EUR/USD is trading 1.1305, down 0.0002 or -0.02%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. It turned down earlier in the week when sellers took out the previous main bottom at 1.1317.

The short-term range is 1.1234 to 1.1420. Its retracement zone at 1.1305 to 1.1327 is controlling the near-term direction of the Forex pair.

The main range is 1.1514 to 1.1234. Its retracement zone at 1.1374 to 1.1407 is resistance. It stopped the rally last week at 1.1420.

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 Fibonacci level at 1.1305 and the uptrending Gann angle at 1.1299.

Bullish Scenario

A sustained move over 1.1305 will indicate the presence of buyers. If this move is able to create enough upside momentum then look for a move into the short-term 50% level at 1.1327. Since the trend is down, sellers are likely to come in on a test of this level. The 50% level is also the trigger point for an acceleration into the downtrending Gann angle at 1.1340.

Bearish Scenario

The inability to hold above 1.1305 will be the first sign of weakness. This should lead to a retest of the uptrending Gann angle at 1.1299. This angle is a potential trigger point for an acceleration to the downside with the next target angle coming in at 1.1267. This is the last potential support angle before the 1.1234 main bottom.

Looking ahead to Thursday, it looks as if the direction of the EUR/USD the rest of the week will be determined by trader reaction to the short-term retracement levels at 1.1327 to 1.1305. A dovish or hawkish tone by the ECB will be the catalyst behind the next major move.