EUR/USD Mid-Session Technical Analysis for October 11, 2018

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 50% level at 1.1558.
James Hyerczyk
Euro Dollar

The Euro is trading higher shortly before the U.S. opening. A weaker U.S. Dollar is contributing to the move. Flight-to-safety buying of Treasurys is driving down yields; this is helping to make the dollar a less attractive investment.

At 1014 GMT, the EUR/USD is at 1.1561, up 0.0042 or 0.38%.

Optimism over Brexit is also underpinning prices; however, gains could be limited by renewed concerns over Italy’s finances.


Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart; however, momentum has shifted to the upside on Wednesday. A trade through 1.1432 will signal a resumption of the downtrend.

The minor trend is up. It turned up on a trade through 1.1549 on Wednesday. This shifted momentum to the upside. The next minor top target is 1.1596.

The main range is 1.1301 to 1.1816. The market has been straddling its retracement zone at 1.1558 to 1.1498 for about eight sessions. Trader reaction to this zone will determine the near-term direction of the Forex pair.

The minor range is 1.1816 to 1.1432. If the upside momentum continues then look for a rally into its retracement zone at 1.1624 to 1.6693.

Suggested Articles

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 50% level at 1.1558.
A sustained move over 1.1558 will signal the presence of buyers. This could generate the upside momentum needed to challenge the minor top at 1.1596 and the minor retracement zone at 1.1624 to 1.1669. Since the main trend is down, sellers could come in on a test of this zone.

A sustained move under 1.1558 will indicate the presence of sellers. The first downside target is the main Fib level at 1.1498. This is followed by 1.1432. If this market is going to move higher, it may have to pullback about 50% of the two-day rally to attract fresh counter-trend buyers.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.