EUR/USD Mid-Session Technical Analysis for October 23, 2019

The Euro is trading slightly lower on Wednesday after lawmakers on Tuesday night voted in principle for Prime Minister Boris Johnson’s Withdrawal Agreement Bill to proceed through parliament, but rejected the prime minister’s plans to get it approved within three days.

The focus now shifts to the European Union for a verdict on whether to grant an extension to the October 31 deadline and for how long.

At 11:28 GMT, the EUR/USD is trading 1.1116, down 0.0009 or -0.08%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top at 1.1179 on October 21.  A trade through 1.1179 will negate the closing price reversal top and signal a resumption of the uptrend.

A closing price reversal top does not indicate a change in trend, but it often triggers the start of at least a 2 to 3 day correction.

The minor range is 1.0991 to 1.1179. Its 50% level or pivot at 1.1085 is the next downside target. Since the main trend is up, buyers could come in on a test of this level.

The main range is 1.0879 to 1.1179. Its retracement zone comes in at 1.1029 to 1.0994. This is a value zone.

Daily Technical Forecast

Based on the early price action and the current price at 1.1116, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the long-term downtrending Gann angle at 1.1109.

Bullish Scenario

A sustained move over 1.1109 will indicate the presence of buyers. This could trigger an intraday rally into a short-term downtrending Gann angle at 1.1139. Overcoming this angle will indicate the buying is getting stronger with the next target angle coming in at 1.1159.

Bearish Scenario

A sustained move under 1.1109 will signal the presence of sellers. This is a potential trigger point for a spike into the pivot at 1.1085. Look for buyers on the first test of this level.

If 1.1085 fails as support then look for a potential acceleration to the downside with the next target angle coming in at 1.1039.