EUR/USD Mid-Session Technical Analysis for September 19, 2019Based on the early price action and the current price at 1.1067, the direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the Fibonacci level at 1.1073 and the downtrending Gann angle at 1.1074.
The Euro is trading higher against the U.S. Dollar as traders continue to react to yesterday’s widely expected rate cut by the Federal Reserve. The price action suggests investors expected more from the Fed and that future rate cuts may be coming despite the Fed seemingly downplaying the possibility.
The initial reaction by traders after the Fed decisions drove the Euro lower, however, they changed their minds later after digesting the Fed’s policy statement. Additionally, the risks remain skewed to more rate cuts before the end of 2019 due to the uncertainty over U.S.-China trade relations.
At 12:49 GMT, the EUR/USD is trading 1.1067, up 0.0038 or +0.34%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.1110 will signal a resumption of the uptrend. The main trend will change to down on a trade through 1.0927.
The minor trend is also up. A trade through 1.1076 will indicate the buying is getting stronger. A move through 1.0990 will change the minor trend to down. This will shift momentum to the downside.
The main range is 1.1164 to 1.0926. Its retracement zone at 1.1045 to 1.1073 is currently providing resistance. This zone is also controlling the near-term direction of the EUR/USD.
The short-term range is 1.0927 to 1.1110. Its retracement zone at 1.1019 to 1.0997 is support.
Daily Technical Forecast
Based on the early price action and the current price at 1.1067, the direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the Fibonacci level at 1.1073 and the downtrending Gann angle at 1.1074.
A sustained move over 1.1074 will indicate the presence of buyers. If this move creates enough upside momentum then look for a rally into the main top at 1.1110, followed by another downtrending Gann angle at 1.1119.
A sustained move under 1.1073 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the main 50% level at 1.1045, followed by an uptrending Gann angle at 1.1027.
If 1.1027 fails as support then look for the selling to possibly extend into the short-term retracement zone at 1.1019 to 1.0997.