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

Based on the early price action and the current price at 1.1181, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1182.
James Hyerczyk
EUR/USD

The Euro is trading lower on Tuesday after a successful test of a short-term 50% level brought in the sellers. Lower demand for risky assets is also putting pressure on the single-currency. Renewed concerns over a global economic slowdown due to uncertainty over U.S.-china relations is the catalyst behind the selling pressure.

At 13:30 GMT, the EUR/USD is trading 1.1181, down 0.0018 or -0.16%.

Daily EUR/USD

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. A trade through 1.1135 will be the first sign of weakness, while a trade through 1.1112 will reaffirm the downtrend. A sustained move under the May 30, 2017 main bottom at 1.1109 will put the EUR/USD in an extremely weak position.

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

The short-term range is 1.1324 to 1.1112. Its retracement zone at 1.1218 to 1.1243 is acting like support.

The main range is 1.1448 to 1.1112. Its retracement zone at 1.1280 to 1.1320 is another resistance area.

Daily Technical Forecast

Based on the early price action and the current price at 1.1181, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1182.

Bearish Scenario

A sustained move under 1.1182 will indicate the selling is getting stronger. This could trigger a spike into the next uptrending Gann angle at 1.1147. This is the last potential support angle before the 1.1135 and 1.1112 main bottoms.

Bullish Scenario

A sustained move over the Fibonacci level at 1.1185 will signal the presence of buyers. If this creates enough upside momentum then look for the buying to extend into the short-term 50% level at 1.1218.

Overtaking 1.1218 will indicate the buying is getting stronger. This could trigger a further rally into a downtrending Gann angle at 1.1239, followed by the short-term 61.8% level at 1.1243.

Until the main trend changes to up, traders are likely to continue to sell rallies into resistance.

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