EUR/USD Mid-Session Technical Analysis for September 28, 2018

The Euro is getting hit hard by sellers on Friday. According to reports the financial markets are nervous that the Italian government’s spending plans will boost Italy’s debt. Some traders are viewing the passing of Italy’s budget as a defiance of European Union rules.

At 1128 GMT, the EUR/USD is trading 1.1581, down 0.0060 or -0.51%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. The main trend will change to down on a trade through 1.1562. A move through 1.1816 will signal a resumption of the uptrend.

The minor trend is down. It turned down on Thursday when sellers took out the minor bottom at 1.1650. This move confirmed the shift in momentum to down.

The minor range is 1.1526 to 1.1816. Its retracement zone at 1.1637 to 1.1671 is new resistance. Trading below this zone is helping to contribute to the strong downside bias.

The main range is 1.1301 to 1.1816. Its retracement zone at 1.1559 to 1.1498 is the next downside target. Since the main bottom at 1.1526 falls inside this zone, buyers are likely to step in on a test of this area. Watch for a technical bounce on the initial test of this zone.

Daily Technical Forecast

Based on the current price at 1.1581, the next downside target is the main 50% level at 1.1559. Look for a technical bounce on the first test of this price. If it fails then look for the selling to extend into the main bottom at 1.1526, followed closely by the Fibonacci level at 1.1498.

If 1.1498 fails as support, the selling could continue into the uptrending Gann angle at 1.1461. This angle is also the trigger point for an acceleration to the downside with the next target angle coming in at 1.1381. This is the last potential support angle before the 1.1301 main bottom.

On the upside, the key targets form a resistance cluster. The first target is an uptrending Gann angle at 1.1621. This is followed by the Fibonacci level at 1.1637 and a downtrending Gann angle at 1.1656.