EUR/USD Mid-Session Technical Analysis for November 29, 2018

By:

Published: Nov 29, 2018, 15:27 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 the short-term 50% level at 1.1370. The trigger point for an acceleration to the upside is 1.1404. If this occurs later today on rising volume, we could see a breakout into the next downtrending Gann angle at 1.1439. This is the last potential resistance angle before the 1.1474 main top.

The Euro is trading higher but giving back earlier gains, bringing it back to nearly breakeven for the session. There was follow-through buying following yesterday’s dramatic closing price reversal bottom. This move confirmed the chart pattern, however, buyers couldn’t sustain the rally. This suggests yesterday’s buying was more likely short-covering rather than aggressive counter-trend buying.

At 1401 GMT, the EUR/USD is trading 1.1392, up 0.0010 or +0.09%.

Traders could try to hold the Forex pair in a range ahead of today’s release of the latest Fed meeting minutes. The minutes could shed more light on Fed policy and future rate hikes. However, the minutes may not match Fed Chair Jerome Powell’s current assessment of Fed policy, which he delivered on Wednesday.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside with the formation of yesterday’s closing price reversal bottom and today’s subsequent confirmation. The main trend will change to up on a trade through 1.1474. The downtrend will resume on a move through 1.1267.

The main range is 1.1216 to 1.1474. Its retracement zone at 1.1345 to 1.1315 is new support.

The short-term range is 1.1474 to 1.1267. Its retracement zone at 1.1370 to 1.1395 is new resistance.

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 short-term 50% level at 1.1370.

Bullish Scenario

A sustained move over 1.1370 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to extend into the short-term Fibonacci level at 1.1395, followed by a downtrending Gann angle at 1.1404. This move took place earlier today.

The trigger point for an acceleration to the upside is 1.1404. If this occurs later today on rising volume, we could see a breakout into the next downtrending Gann angle at 1.1439. This is the last potential resistance angle before the 1.1474 main top.

Bearish Scenario

A sustained move under 1.1370 will signal the presence of sellers. This could drive the EUR/USD into the support cluster at 1.1346 to 1.1345. This area provided support earlier today.

Breaking 1.1345 will indicate the selling is getting stronger with the next major downside target 1.1315.

About the Author

James Hyerczykauthor

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.