EUR/USD Mid-Session Technical Analysis for October 12, 2018

The Euro is pulling back on Friday after hitting its highest level since October 1 earlier in the session. The move suggests that sellers have retaken control. A pre-session recovery in U.S. equity futures markets is helping to make the U.S. Dollar a more attractive investment.

At 1108 GMT, the EUR/USD is trading 1.1584, down 0.0010 or -0.09%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 1.1432 will signal a resumption of the downtrend. The main trend will change to up on a move through 1.1816.

The minor trend is up. This shifted momentum to the upside. It turned up when buyers took out 1.1549. It was reaffirmed when 1.1596 was crossed.

The nearest resistance is a retracement zone at 1.1624 to 1.1669. Since the main trend is down, sellers are likely to show up on a test of this zone.

The first support is a longer-term 50% level at 1.1558. The second support is a short-term 50% level at 1.1522. The final support is the Fibonacci level at 1.1498.

Daily Swing Chart Technical Forecasts

Based on the current price at 1.1585, the direction of the EUR/USD is likely to be determined by trader reaction to the 50% level at 1.1624 and the 50% at 1.1558.

Holding between 1.1624 and 1.1558 will indicate investor indecision and impending volatility.

Taking out 1.1612 and 1.1624 will indicate the buying is getting stronger. This could trigger an acceleration into 1.1669.

A failure to hold 1.1558 will signal the presence of sellers. This could lead to an extension of the selling into 1.1522, followed closely by 1.1498.