EUR/USD Mid-Session Technical Analysis for March 7, 2019

The Euro is trading nearly flat shortly ahead of the European Central Bank’s interest rate and monetary policy decisions. Policymakers are widely expected to leave interest rates unchanged, but traders aren’t certain what, if anything, the ECB will do about long-term support programs. Additionally, the ECB is expected to cut growth forecasts and is likely to provide a strong signal to traders that fresh stimulus is coming in the form of more cheap loans.

At 13:27 GMT, the EUR/USD is trading 1.1309, up 0.0003 or +0.04%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1286 will signal a resumption of the downtrend. A trade through 1.1420 changes the main trend to up.

The EUR/USD is not likely to change trend, but it is inside the window of time for a closing price reversal bottom. If formed and confirmed, this could trigger the start of a 2 to 3 day correction.

The short-term range is 1.1234 to 1.1420. The EUR/USD is currently trading inside its retracement zone at 1.1327 to 1.1305. This zone 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.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1304 and the 50% level at 1.1327.

Bullish Scenario

A sustained move over 1.1327 will indicate the presence of buyers. Taking out this level with conviction could trigger an acceleration to the upside with the next major target a downtrending Gann angle at 1.1370.

Bearish Scenario

A sustained move under 1.1304 will signal the presence of sellers. This could trigger a quick break into 1.1286. If this price fails then look for an extension of the break into an uptrending Gann angle at 1.1269. This is the last potential support angle before the 1.1234 main bottom.