EUR/USD Mid-Session Technical Analysis for May 9, 2019

The lack of fresh economic data out of the Euro Zone is helping to hold the Euro in a range for a second session. Traders appear to be waiting for fresh news regarding U.S.-China trade relations. At 12:30 GMT, investors will get the opportunity to react to the latest news on Producer Inflation, the Trade Balance and Weekly Unemployment Claims. Fed Chairman Jerome Powell is also scheduled to speak. Strong economic data or less-dovish comments from Powell could put pressure on the Euro.

At 12:05 GMT, the EUR/USD is trading 1.1191, down 0.0001 or -0.01%.

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 move through 1.1135 will signal a resumption of the downtrend. Taking out this bottom should lead to a test of the next main bottom at 1.1112, followed by the May 30, 2017 main bottom at 1.1109.

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

On the upside, resistance is coming from a short-term retracement zone at 1.1218 to 1.1243. The next resistance zone comes in 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 Fibonacci level at 1.1185.

Bullish Scenario

A sustained move over 1.1185 will indicate the presence of buyers. Overcoming the uptrending Gann angle at 1.1202 will indicate the buying is getting stronger. This could trigger a labored rally into the short-term 50% level at 1.1218, followed by a downtrending Gann angle at 1.1229 and the short-term Fibonacci level at 1.1243. This is the last resistance before the 1.1265 main top.

Bearish Scenario

A sustained move under 1.1185 will signal the presence of sellers. There is room to the downside with the next target angle coming in at 1.1157. This is followed by a support cluster at 1.1135. This is the last potential support before the 1.1112 to 1.1109 main bottoms.