EUR/USD Mid-Session Technical Analysis for October 4, 2018Based 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 Fibonacci level at 1.1498 and the uptrending Gann angle at 1.1481. Basically, look for the EUR/USD to strengthen on a sustained move over 1.1498 and weaken on a sustained move under 1.1481.
The Euro is trading slightly higher against the U.S. Dollar shortly after the U.S. opening on Thursday. The single-currency is rebounding from early session weakness fueled by higher U.S. Treasury yields and expectations for additional rate hikes from the Fed.
The currency is also trying to establish support in the wake of a possible easing of tensions between Italy and the European Union.
At 1106 GMT, the EUR/USD is trading 1.1498, up 0.0019 or +0.17%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, the early price action suggests momentum could shift to the upside with the formation of a closing price reversal bottom. If the selling pressure resumes, however, then look for a potential break into the next main bottom at 1.1301.
The minor trend is also down. A trade through 1.1596 will change the minor trend to up. This will also signal a shift in momentum to the upside.
The main range is 1.1301 to 1.1816. Its retracement zone is 1.1559 to 1.1498. This zone is controlling the near-term direction of the EUR/USD. The market is currently trading on the weak side of this zone, helping to give it a downside bias.
If a short-term range develops between 1.1816 and 1.1463 then its retracement zone at 1.1640 to 1.1681 will become the primary upside target.
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 Fibonacci level at 1.1498 and the uptrending Gann angle at 1.1481.
A sustained move over 1.1498 will indicate the return of buyers. This will also mean the EUR/USD is forming a closing price reversal bottom. If this move generates enough upside momentum then watch for a surge into the main 50% level at 1.1559. This is also the trigger point for an acceleration to the upside with the minor top at 1.1596 the next target.
A sustained move under the uptrending Gann angle at 1.1481 will signal the presence of sellers. This could lead to a retest of today’s intraday low at 1.1463.
The daily chart indicates there is plenty of room to the downside under 1.1463 with the next target angle coming in at 1.1391. This is the last potential support angle before the 1.1301 main bottom.
Basically, look for the EUR/USD to strengthen on a sustained move over 1.1498 and weaken on a sustained move under 1.1481.