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EUR/USD Mid-Session Technical Analysis for November 22, 2018

By:
James Hyerczyk
Updated: Nov 22, 2018, 12:52 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 a pair of Gann angles at 1.1391 and 1.1376.

eur/usd

The Euro is trading up on Thursday, benefitting from the shedding of the safe-haven U.S. Dollar due to a second day of stability in the global equity markets. Speculators are also increasing bets on hopes for a resolution of Italy’s budget dispute. Traders are also taking advantage of the thin trading conditions due to the U.S. Thanksgiving holiday.

At 1219 GMT, the EUR/USD is trading 1.1415, up 0.0029 or +0.26%.

EURUSD
Daily EUR/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. Traders are still trying to decide the direction of momentum, however.

The six-day rally from the bottom at 1.1216 suggests momentum may be getting ready to shift to the upside. However, Tuesday’s closing price reversal top may have put an end to that thought at least temporarily.

A trade through 1.1474 will negate the closing price reversal top. This will put the EUR/USD in a position to challenge the main top at 1.1501. A trade through this top will change the main trend to up.

A move through 1.1358 will confirm the closing price reversal top. This will also shift momentum to the downside.

On the upside, the nearest resistance is a 50% level at 1.1447.

The short-term range is 1.1216 to 1.1474. If the selling pressure continues then look for a move into its retracement zone at 1.1345 to 1.1315.

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 a pair of Gann angles at 1.1391 and 1.1376.

A sustained move over 1.1391 indicates the presence of buyers. If they can create enough upside momentum then look for the rally to extend into the price cluster formed by the downtrending Gann angle at 1.1446 and the 50% level at 1.1447.

A sustained move under 1.1376 will signal the presence of sellers. The daily chart is open to the downside under this level with 1.1345 the next likely target.

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.

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