EUR/USD Mid-Session Technical Analysis for November 20, 2018Based on the early price action, it looks like the direction of the EUR/USD today is likely to be determined by trader reaction to a pair of Gann angles at 1.1456.
The Euro is trading lower Tuesday after giving back earlier gains. A sell-off in the European equity markets and new concerns over Italian banks is pressuring the single-currency. A surge in the U.S. Dollar due to safe-haven buying is also driving buyers out of the Euro.
At 1300 GMT, the EUR/USD is trading 1.1419, down 0.0035 or -0.31%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 1.1501 will change the main trend to up. A move through 1.1216 will signal a resumption of the downtrend.
The EUR/USD is also in a position to form a closing price reversal top. This will shift momentum back to the downside.
On the upside, the major 50% level is 1.1447. This level is being straddled today.
The new short-term range is 1.1216 to 1.1474. If the reversal top is formed and confirmed on Wednesday then look for a pullback into its 50% to 61.8% level at 1.1345 to 1.1315.
Daily Technical Forecast
Based on the early price action, it looks like the direction of the EUR/USD today is likely to be determined by trader reaction to a pair of Gann angles at 1.1456.
A sustained move under 1.1456 will indicate the presence of sellers. The daily chart is wide open to a downtrending Gann angle at 1.1411. Crossing to the weak side of this angle could trigger another acceleration to the downside with the next targets coming in at 1.1345 and 1.1336.
Buyers would have to drive the EUR/USD back over 1.1456 in order to generate any kind of upside momentum.