EUR/USD Mid-Session Technical Analysis for May 10, 2019

The Euro is edging higher on Friday and is in a position to post another weekly gain on growing fears that any escalation in the trade dispute between the United States and China would weaken the U.S. economy enough to force the Federal Reserve to cut interest rates. This move would make the dollar a less-attractive investment.

At 13:44 GMT, the EUR/USD is trading 1.1242, up 0.0031 or +0.27%.

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. This could lead to an eventual test of the next main top at 1.1324.

A trade through 1.1135 will signal a resumption of the next downside targets at 1.1135, 1.1112 or 1.1109.

The longer-term support is the Fibonacci level at 1.1185.

The short-term range is 1.1324 to 1.1112. Its retracement zone at 1.1218 to 1.1243 is currently being tested. This zone is controlling the short-term direction of the Euro.

The main range is 1.1448 to 1.1112. If the trend changes to up on a move over 1.1265, then look for the rally to continue into its retracement zone at 1.1280 to 1.1320.

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 Fibonacci level at 1.1243.

Bullish Scenario

A sustained move over 1.1243 will indicate the presence of buyers. This could create the upside momentum needed to challenge a downtrending Gann angle at 1.1263, a main top at 1.1265, another downtrending Gann angle at 1.1274 and the main 50% level at 1.1280. The latter is the trigger point for an acceleration to the upside with the next targets 1.1320 and 1.1324.

Bearish Scenario

A sustained move under 1.1243 will signal the presence of sellers. This could trigger a break into a cluster of levels at 1.1224, 1.1218 and 1.1212.

The uptrending Gann angle at 1.1212 is the trigger point for an acceleration to the downside. This could create the downside momentum needed to challenge the major Fibonacci level at 1.1185.