EUR/USD Mid-Session Technical Analysis for October 16, 2018
The Euro is trading lower on Tuesday, but inside yesterday’s and Friday’s range. This tends to indicate investor indecision and impending volatility. The currency is trading inside a pair of retracement zones, which is adding further to the possibility of another session of sideways trading.
At 0103 GMT, the EUR/USD is trading 1.1577, down 0.0008 or -0.7%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 1.1612 will indicate the buying is getting stronger.
The minor trend is up. This is why the momentum shifted to the upside.
The nearest support is a 50% level at 1.1559, followed by a Fibonacci level at 1.1498.
The short-term range is 1.1816 to 1.1432. Its retracement zone at 1.1624 to 1.1669 is the next upside target. Since the main trend is down, sellers are likely to show up on a test of this area. Taking out 1.1669 could trigger a breakout to the upside.
Daily Technical Forecast
Given the two inside moves, trading between Friday’s high at 1.1612 and low at 1.1535 will continue to signal investor indecision and impending volatility.
A trade through 1.1612 will indicate an upside bias, however, any rally is likely to be labored because of a series of potential resistance levels at 1.1624, 1.1632, 1.1656 and 1.1669. The latter is the true breakout price level.
Taking out 1.1535 will signal the selling is getting stronger. This could trigger a quick break into an uptrending Gann angle at 1.1532. This angle has to hold or the EUR/USD will continue into the next support at 1.1498, followed by the next uptrending Gann angle at 1.1482.