Advertisement
Advertisement

EUR/USD Mid-Session Technical Analysis for May 8, 2019

By:
James Hyerczyk
Published: May 8, 2019, 12:36 UTC

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 uptrending Gann angle at 1.1192.

EUR/USD

The Euro is trading slightly better on Wednesday, but inside yesterday’s range. The price action suggests investor indecision and impending volatility. Traders are trying to figure out how to play the potential for heightened volatility due to renewed tensions over trade between the United States and China. If the trade talks fall apart then this could put pressure on the Euro Zone economy, which could lead to further stimulus in the future from the European Central Bank. This would weaken the Euro.

At 12:31 GMT, the EUR/USD is trading 1.1201, up 0.0009 or +0.08%.

EUR/USD
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. This could trigger an eventual rally into the next swing top at 1.1324.

A move through 1.1135 will signal a resumption of the downtrend. This could lead to a test of the next main bottom at 1.1112, followed by the May 30, 2017 main bottom at 1.1109. This is the trigger point for an acceleration to the downside.

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

The short-term range is 1.1324 to 1.1112. Its retracement zone at 1.1218 to 1.1243 has been providing resistance the last seven sessions.

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 uptrending Gann angle at 1.1192.

Bullish Scenario

A sustained move over 1.1192 will indicate the presence of buyers. The first target is a 50% level at 1.1218, followed closely by a downtrending Gann angle at 1.1234 and a Fibonacci level at 1.1243.

Overtaking 1.1243 will indicate the buying is getting stronger with upside targets at 1.1265, 1.1273 and 1.1280.

Bearish Scenario

A sustained move under 1.1192 will signal the presence of sellers. This should lead to a quick test of 1.1185.

The daily chart opens up to the downside under 1.1185 with the next target angle coming in at 1.1152.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement