EUR/USD Mid-Session Technical Analysis for November 1, 2018

Positive news over Brexit is helping to drive the Euro higher on Thursday. Buyers stepped in yesterday to stop the price slide slightly above a 2-1/2 month low on hopes of an EU-UK Brexit deal for financial services.  The strong rally has put the Euro in a position to turn higher for the week. This could trigger the start of a 2 to 3 week rally.

At 1231 GMT, the EUR/USD is trading 1.1374, up 0.0038 or +0.34%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1301 will signal a resumption of the downtrend. The main trend will change to up on a move through 1.1555.

The minor range is 1.1422 to 1.1301. Its 50% level or pivot is controlling the direction of the Forex pair today.

The short-term range is 1.1555 to 1.1301. Its retracement zone at 1.1428 to 1.1458 is the first upside target. Since the main trend is down, sellers are likely to come in on a test of this zone.

The main retracement zone comes in at 1.1498 to 1.1559.

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 1.1395.

A sustained move over 1.1395 will indicate the buying is getting stronger. This could create the upside momentum needed to challenge the short-term 50% level at 1.1428. We could see sellers on the first test of this level. If buyers can take it out then the Fib level at 1.1458 will become the next upside target.

A sustained move under 1.1395 will signal the presence of sellers. The first downside target is another downtrending Gann angle at 1.1382.

Crossing to the weak side of the angle at 1.1382 will indicate the selling is getting stronger with the next target the pivot at 1.1362. Prices will weaken further if the pivot fails as support.

Given that the EUR/USD is currently straddling a pair of downtrending Gann angles, look for the upside bias to continue on a sustained move over 1.1395. Look for a downside bias to develop on a sustained move under 1.1382.