EUR/USD Mid-Session Technical Analysis for October 24, 2018

The Euro is trading lower after a weaker-than-expected Purchasing Managers Index (PMI) raised concerns that economic growth could be slowing across the Euro Zone. The report showed Euro Zone business growth slowed much faster than expected this month. German private-sector growth slowed to its lowest level in more than three years, and manufacturing in France hit a 25-month low, according to other surveys.

At 0136 GMT, the EUR/USD is trading 1.1402, down 0.0065 or -0.97%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed on Wednesday when sellers took out the two recent bottoms at 1.1433 and 1.1432. The next major target is 1.1301.

The main trend changes back to up on a trade through 1.1555.

The main range is 1.1301 to 1.1816. Its retracement zone at 1.1498 to 1.1559 is new resistance. This zone is controlling the near-term direction of the EUR/USD.

Daily Swing Chart 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 former bottom at 1.1432.

A sustained move under 1.1432 will indicate the selling is getting stronger. If this creates enough downside momentum then look for an eventual move into the August 15 main bottom at 1.1301.

Overcoming 1.1432 will signal the return of buyers. This could trigger a short-covering with 1.1498 the next likely target.

There’s not a lot to analyze in the EUR/USD. The trend is down, downside momentum is increasing and the selling is being driven by headline events. This may be just enough to pressure the Forex pair into 1.1301 over the near-term.