EUR/USD Mid-Session Technical Analysis for November 28, 2018

The Euro is trading slightly lower after recovering from earlier weakness. Traders appear to be squaring positions ahead of the release of the U.S. GDP report at 1330 GMT and a speech by Federal Reserve Chairman Jerome Powell at 1700 GMT. The Euro has been under pressure since European Central Bank Mario Draghi acknowledged signs the Euro Zone economy is weakening on Monday. Tension between the European Union and Italy over Rome’s budget continue to weigh on the single-currency.

At 1301 GMT, the EUR/USD is trading 1.1286, down 0.0004 or -0.04%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1216 will reaffirm the downtrend. A move through 1.1474 will change the main trend to up.

The short-term range is 1.1216 to 1.1474. Its retracement zone at 1.1315 to 1.1345 is resistance. Trading below this zone is also supporting the downside bias. The target under the 1.1216 bottom is a 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 uptrending Gann angle at 1.1276.

Bullish Scenario

A sustained move over 1.1276 will indicate the presence of buyers. If this move can generate enough upside momentum then look for a possible rally into the Fibonacci level at 1.1315. Overtaking this level will indicate the buying is getting stronger, but the move is likely to be labored because of potential resistance at 1.1336, 1.1345 and 1.1354. Since the main trend is down, sellers are likely to come in on a test of any of this levels.

Bearish Scenario

A sustained move under 1.1276 will signal the presence of sellers. The next target angle comes in at 1.1246. This is the last potential support angle before the 1.1216 main bottom. Look for a potential acceleration into 1.1185 if 1.1216 fails as support.