EUR/USD Mid-Session Technical Analysis for May 13, 2019

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 downtrending Gann angle at 1.1258. This angle essentially stopped the rally earlier in the session.
James Hyerczyk

The Euro is trading higher against the U.S. Dollar on Monday after China imposed a 25% tariff on $60 billion of U.S. imports. The move is in retaliation to the U.S. decision on Friday to impose a 25% tariff on $200 billion of China imports.

It’s not the new tariffs per se that are driving the Euro higher, but rather what an escalating trade war can do to the U.S. economy. If the trade war weakens the U.S. economy enough to cause a recession, then the Federal Reserve will be forced to cut its benchmark interest rate. The U.S. Dollar will become a less-desirable asset if the Fed cuts rates. This will drive the Euro higher. Today’s price action indicates that some investors are already pricing in a Fed rate hike for later in the year.

At 13:06 GMT, the EUR/USD is trading 1.1259, up 0.0025 or +0.22%.


Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1265 will change the main trend to up. The next upside target then becomes the April 12 top at 1.1324.

A trade through 1.1135 will signal a resumption of the downtrend, followed by a pair of main bottoms at 1.1112 and 1.1109.

The main range is 1.1448 to 1.1112. Its retracement zone at 1.1280 to 1.1320 is the next upside target.

The short-term range is 1.1324 to 1.1112. Crossing to the strong side of its retracement zone at 1.1243 to 1.1218 turns this zone into support.

The major support is the long-term Fibonacci level at 1.1185.

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 downtrending Gann angle at 1.1258. This angle essentially stopped the rally earlier in the session.

Bullish Scenario

A sustained move over 1.1258 will indicate the presence of buyers. Taking out 1.1265 will change the main trend to up. This could lead to a test of a downtrending Gann angle at 1.1272, followed by the main 50% level at 1.1280.

Overtaking 1.1280 could trigger an acceleration to the upside with the next target the main Fibonacci level at 1.1320, followed by the main top at 1.1324.

Bearish Scenario

A sustained move over 1.1258 will signal the return of sellers. The first downside target is the short-term Fibonacci level at 1.1243, followed by an uptrending Gann angle at 1.1222 and the short-term 50% level at 1.1218. This is the trigger point for an acceleration to the downside.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.