EUR/USD Mid-Session Technical Analysis for May 29, 2019

Rising concerns over U.S.-China trade relations are helping to pressure the Euro on Wednesday. Investors are driving down German bund and U.S. Treasury yields as they seek protection against a possible global economic slowdown. Safe-haven demand for the U.S. Dollar is also making the Euro a less-desirable currency as well as lower demand for higher risk assets.

At 13:00 GMT, the EUR/USD is trading 1.1150, down 0.0010 or -0.09%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom at 1.1107 on May 23. Although this potentially chart pattern was confirmed, sellers re-emerged on May 27 at 1.1215 and produced a minor reversal top. This has been putting pressure on the single-currency this week.

A trade through 1.1215 will change the main trend to up, while a move through 1.1107 will negate the closing price reversal bottom and signal a resumption of the downtrend. The daily and weekly charts indicate that there is plenty of room to the downside under 1.1107 so watch for a potential acceleration to the downside.

The main range is 1.1264 to 1.1107. Its retracement zone at 1.1185 to 1.1204 is resistance. The 50% level at 1.1185 is also a long-term resistance level.

The short-term range is 1.1107 to 1.1215. Its retracement zone at 1.1161 to 1.1148 is currently being tested. This zone is very important to the chart pattern. Although the main trend is down, aggressive counter-trend buyers could come in on a test of this zone in an effort to form a secondary higher bottom.

Daily Technical Forecast

Based on today’s price action, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the short-term Fibonacci level at 1.1148 and the uptrending Gann angle at 1.1147.

Bullish Scenario

A sustained move over 1.1148 will indicate the presence of buyers. If this can create enough upside momentum then look for a possible rally into the 50% level at 1.1161, this is followed by a downtrending Gann angle at 1.1175. Overtaking the Gann angle could trigger an acceleration to the upside with the next target angle coming in at 1.1195.

Bearish Scenario

A sustained move under 1.1147 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with the next target angle coming in at 1.1127. This is followed by another uptrending Gann angle at 1.1117. This is the last potential support angle before the 1.1107 main bottom.