EUR/USD Mid-Session Technical Analysis for September 5, 2018

The Euro is trading lower on Wednesday as investors continue to express concerns over global trade disputes and falling emerging market currencies. The single-currency is trading inside yesterday’s range which suggest investor indecision and impending volatility.

At 1203 GMT, the EUR/USD is trading 1.1582, down 0.0001 or -0.01%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 1.1734 will signal a resumption of the uptrend.

The minor trend is down. This is driving the momentum lower. A trade through the minor bottom at 1.1530 will indicate the selling pressure is getting stronger.

The minor range is 1.1530 to 1.1734. Its 50% level or pivot is controlling the near-term direction of the EUR/USD.

The main range is 1.1301 to 1.1734. Its retracement zone at 1.1518 to 1.1466 is the primary downside target. Since the main trend is up, buyers could return on a test of this zone.

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Daily Technical Forecast

Based on the current price action, the direction of the EUR/USD the rest of the day is likely to be determined by trader reaction to a pair of Gann angles at 1.1601 and 1.1614.

A sustained move under 1.1601 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into 1.1518 to 1.1466. Look for value-seeking buyers on the first test of this area.

A sustained move over 1.1614 will signal the presence of buyers. This could lead to a quick rally into the pivot at 1.1632.

Overtaking 1.1632 will indicate the buying is getting stronger. This could trigger an acceleration into the downtrending Gann angle at 1.1674.