EUR/USD Mid-Session Technical Analysis for May 15, 2019

The Euro fell to its lowest level since May 9 earlier today after better-than-expected from German failed to draw the attention of buyers. German data showed the economy returned to growth in the March quarter as householders spent more freely and construction activity picked up. Traders said the weakness may have been fueled by dampened risk appetite due to trade tensions between the United States and China.

At 13:43 GMT, the EUR/USD is trading 1.1182, down 0.0022 or -0.20%.

The single-currency found support just a short while ago after U.S. retail sales unexpectedly fell in April as motor vehicle purchases slumped, government data showed on Wednesday. Retail sales fell 0.2% last month, the Commerce Department said. Economists polled by Reuters had forecast retail sales gaining 0.2% in April.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A pair of main tops at 1.1264 and 1.1265 is resistance. Taking out these tops will change the main trend to up. A move through 1.1135 will signal a resumption of the downtrend. This is followed by a pair of main bottoms at 1.1112 and 1.1109.

The main range is 1.1324 to 1.1112. Its retracement zone at 1.1218 to 1.1243 is resistance.

The market is currently straddling a major Fibonacci level at 1.1185. This level is controlling the longer-term direction of the Euro.

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 Fib level at 1.1185.

Bearish Scenario

A sustained move under 1.1185 will indicate the presence of sellers. The next support is an uptrending Gann angle at 1.1177. This angle stopped the selling earlier today. This angle is a potential trigger point for an acceleration to the downside with the next major downtrending Gann angle coming in at 1.1145.

Bearish Scenario

A sustained move over 1.1185 will signal the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the downtrending Gann angle at 1.1209. Overtaking this angle could drive the EUR/USD into the 50% level at 1.1218. This is also the trigger point for an acceleration to the upside with the Fibonacci level at 1.1243 the next major upside target.