EUR/USD Mid-Session Technical Analysis for November 30, 2018

The Euro is trading lower on Friday against a firmer U.S. Dollar as investors nervously awaited the outcome of talks between U.S. President Trump and China’s President Xi Jinping this week-end at the G20 summit in Argentina. The outcome of the discussions could determine whether trade tensions between the two economic powerhouses will continue.

With the Euro currently trading inside a triangle and a retracement zone, the chart pattern strongly suggests investors should start preparing for a powerful breakout.

At 1131 GMT, the EUR/USD is trading 1.1375, down 0.0018 or -0.17%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside with the formation of a closing price reversal bottom on Wednesday and the subsequent confirmation on Thursday.

A trade through 1.1474 will change the main trend to up. This is followed closely by the next main top at 1.1501. On the downside, a trade through 1.1267 will negate the closing price reversal bottom. This will also indicate the return of sellers.

The main range is 1.1216 to 1.1474. Its retracement zone at 1.1345 to 1.1315 is support. The short-term range is 1.1474 to 1.1267. The EUR/USD is currently straddling its retracement zone at 1.1370 to 1.1395. Trader reaction to this zone is likely to dictate the movement in the Euro today.

Daily Technical Forecast

Based on the current price at 1.1375 and the earlier price action, the direction of the EUR/USD is likely to be determined by the short-term retracement level at 1.1395 and the uptrending Gann angle at 1.1356.

Bullish Scenario

A sustained move over 1.1395 will indicate the presence of buyers. If this move can gain traction then look for a potential acceleration into the downtrending Gann angle at 1.1434. This is the last potential resistance angle before the major 50% level at 1.1447 and the main top at 1.1474.

Bearish Scenario

A sustained move under 1.1356 will signal the presence of sellers. This could lead to a quick test of the main 50% level at 1.1345. The daily chart opens up to the downside under this level with the next target the main Fibonacci level at 1.1315.

Holding between 1.1356 and 1.1395 will indicate trader indecision. This should lead to a sideways trade with the 50% level at 1.1370 acting like a pivot.