EUR/USD Mid-Session Technical Analysis for September 7, 2018

The EUR/USD is trading lower on Friday following the release of a better-than-expected U.S. Non-Farm Payrolls report. The news stoked fears of aggressive rate hikes by the Fed, which is supportive for the U.S. Dollar.

The U.S. economy added 201,000 jobs in August, more than the expected increase of 191,000. Average hourly earnings rose 2.9 percent for the month on an annualized basis, marking the largest jump since August 2009. The Unemployment Rate held steady at 3.9%, slightly above the 3.8% forecast.

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. A trade through 1.1529 will change the main trend to down.

The minor trend is down. This is giving the momentum the downside bias. A new minor top has formed at 1.1659. This has the potential of developing into a secondary lower top. A trade through this level will change the minor trend to up and shift momentum to the upside.

The intermediate range is 1.1734 to 1.1529. Its retracement zone at 1.1631 to 1.1656 is resistance.

The minor range is 1.1529 to 1.1659. Its 50% level or pivot at 1.1594 is controlling the direction of the EUR/USD today.

The main range is 1.1301 to 1.1734. Its retracement zone at 1.1518 to 1.1466 is the primary downside target.

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD is likely to be determined by trader reaction to the pivot at 1.1594 and the uptrending Gann angle at 1.1589.

Holding above 1.1594 will indicate the presence of buyers. They could drive the Euro into a series of potential resistance levels at 1.1631, 1.1654, 1.1656 and 1.1659. The latter is the trigger point for an acceleration into 1.1694.

A sustained move under 1.1589 will signal the presence of sellers. This is followed by an uptrending Gann angle at 1.1559. If this angle fails then look for the selling to extend into 1.1529, followed by 1.1518.

Basically, the EUR/USD could strengthen over 1.1594 and weaken under 1.1589.