EUR/USD Mid-Session Technical Analysis for November 12, 2018

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 steep downtrending Gann angle at 1.1261.
James Hyerczyk

The Euro is trading sharply lower against the U.S. Dollar on Monday. The selling is being driven by concerns over Brexit and simmering tensions between the European Union (EU) and the Italian government.

According to the Sunday Times, four British ministers who back remaining in the European Union are on the verge of quitting Theresa May’s government over Brexit, adding to the political uncertainty. Investor confidence is also weakening due to the standoff over Italy’s budget. Last month, the EU rejected Italy’s 2019 budget. Last week, the EU cut its forecasts for Italian growth.


Daily Technical Analysis

The main trend is down according to the daily swing chart. Today’s break through 1.1301 reaffirmed the downtrend, putting the EUR/USD in a position to challenge lows not seen in 16-months. The new resistance is the old bottom at 1.1301.

The next major target is a 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 steep downtrending Gann angle at 1.1261.

Holding above 1.1261 will not indicate a bottom has been reached, it will only indicate the selling pressure is slowing. If this generates enough upside momentum, we could see a test of 1.1301.

Crossing to the weak side of the angle at 1.1261 will put the EUR/USD in an extremely bearish position. This angle is moving down 0.0080 per day from the 1.1501 main top. If the Forex pair continues to follow this angle down then we could see a test of 1.1185 as early as Tuesday.

If the EUR/USD drifts sideways into the next downtrending angle at 1.1381 today, moving down at a rate of 0.0040, then look for a test of 1.1185 on November 19.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.