EUR/USD Mid-Session Technical Analysis for October 9, 2018

A jump in U.S. Treasury yields and renewed tensions between Italy and the European Union drove the Euro to a seven-week low early Tuesday. Early in the session, the U.S. 10-year Treasury yield and 30-year Treasury yield rose to fresh multi-year highs, helping to make the U.S. Dollar a more attractive investment. The Italian 10-year bond yield also jumped to its highest level since February 2014, while the country’s stock market fell to its weakest level since April 2017.

At 1050 GMT, the EUR/USD is trading 1.1446, down 0.0046 or -0.40%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The EUR/USD is in no position to change the main trend to up, but it is in the window of time to form a closing price reversal bottom. Since we’re in a news driven market, we have to be ready for a reversal.

The minor trend is also down. A trade through 1.1549 will change the minor trend to up. This will shift momentum to the upside.

The main range is 1.1301 to 1.1816. Its retracement zone is 1.1498 to 1.1559. This zone is controlling the near-term direction of the EUR/USD. Trading below it today will give the Forex pair a strong downside bias.

---

Suggested Articles

• U.S., Europe, China – The Hotspots of Fear are Burning Everywhere
• Dollar Firms on Safe-Haven Buying, Weaker Euro, Yuan
• Geo-Political Risk and the Greenback Remain in Focus
• With Rates Rising Rapidly, Is It Too Early to Talk About Recession?

---

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the resistance cluster at 1.1496 to 1.1498.

A sustained move under 1.1496 will indicate the presence of sellers. If the downside momentum continues then look for the selling to extend into the next downtrending Gann angle at 1.1399. This is the last potential support angle before the 1.1301 main bottom.

Overtaking and sustaining a rally over 1.1498 will signal the return of buyers. If this generates enough upside momentum then look for a possible surge into 1.1549, followed by 1.1559. This move will also put the EUR/USD in a position to form a potentially bullish closing price reversal bottom.