EUR/USD Mid-Session Technical Analysis for September 21, 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 yesterday’s close at 1.1777 and the July 9 top at 1.1791.
The Euro is trading lower shortly before the U.S. opening after buying dried up slightly above the July 9 top at 1.1791. Furthermore, due to the prolonged move in price and time, the Forex pair began the session in the window of time for a closing price reversal top. This chart pattern does not signal a change in trend, but it could be signaling the start of a 2 to 3 correction, designed to alleviate some of the excessive buying pressure.
At 1029 GMT, the EUR/USD is trading 1.1767, down 0.0011 or -0.09%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. Earlier in the session, the EUR/USD reaffirmed the uptrend when buyers took out the July 9 main top at 1.1791. The uptrend is in no danger of changing to down. A move through 1.1526 will change the main trend to down.
Breaking back below the former main top and turning lower for the session indicates the selling may be greater than the buying at current price levels. Closing below these levels will form a closing price reversal top, and this could lead to the start of a 2-3 day correction.
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 yesterday’s close at 1.1777 and the July 9 top at 1.1791.
A sustained move under 1.1777 will indicate the selling pressure is getting stronger. If this move generates enough downside momentum, we could see a potential break into the uptrending Gann angle at 1.1706.
Look for a technical bounce on the first test of 1.1706. This Gann angle, moving at a rate of .0020 per day has provided support and guidance for eight trading sessions, or since the main bottom at 1.1526 on September 10.
Turning higher for the session will put the EUR/USD in a position to challenge 1.1791 then today’s intraday high at 1.1804. Taking out the latter could generate the upside momentum needed to challenge the June 14, 2018 main top at 1.1851.