EUR/USD Mid-Session Technical Analysis for September 18, 2018
The Euro is trading higher against the U.S. Dollar shortly after the U.S. opening on Tuesday. The price action indicates the currency is showing a positive reaction to the announcement of new tariffs against China. This may mean that the news was already priced into the market, or that investors are hedged against a drop in demand for risky currencies.
At 1200 GMT, the EUR/USD is trading 1.1704, up 0.0020 or +0.17%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum is down with the formation of a closing price reversal top and a secondary lower top at 1.1723. A trade through this high will negate the chart pattern and signal a resumption of the uptrend.
The main trend will change to down on a trade through 1.1526.
The minor trend is also up. A trade through 1.1617 will change the minor trend to down. This will definitely shift momentum to the downside.
The short-term range is 1.1526 to 1.1723. Its retracement zone is 1.1625 to 1.1601. This zone provided support on Monday when the selling stopped at 1.1617.
The main range is 1.1301 to 1.1734. If the trend changes to down then its retracement zone at 1.1518 to 1.1466 will become the primary downside target.
Daily Technical Forecast
Based on the early price action, the direction of the EUR/USD is being controlled by the uptrending Gann angle at 1.1646. If this creates enough upside momentum then we could see a move into 1.1723. Taking out this level should lead to a test of a pair of tops at 1.1734 and 1.1751.
The inability to overcome the reversal top at 1.1723 will signal the presence of sellers. If this creates enough downside momentum then we could see a move into an uptrending Gann angle at 1.1646. Look for a technical bounce on the first test of this angle. But if it fails then look for the selling to extend into the short-term retracement zone at 1.1625 to 1.1601.