EUR/USD Mid-Session Technical Analysis for January 10, 2018

The EUR/USD is trading sharply higher on Wednesday. Volatility in the Forex market due to a move by the Bank of Japan, is making the U.S. Dollar a less desirable asset. Investors are selling the higher-yielding U.S. Dollar and moving money into lower-yielding assets.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.2088 will signal a resumption of the uptrend.

A new minor bottom was formed at 1.1915 earlier today.

The main range is 1.1736 to 1.2088. Its retracement zone is 1.1912 to 1.1870. Inside this range is a major Fibonacci level at 1.1886. This area is an important support cluster. On Tuesday, the EUR/USD stopped its price slide at 1.1915.

The short-term range is 1.2088 to 1.1915. Its retracement zone is 1.2002 to 1.2022. This zone was tested earlier today. Trader reaction to this zone will determine the near-term direction of the market. Aggressive short-term investors are going to try to stop the rally on a test of this zone in an effort to form a potentially bearish secondary lower top. Trend traders are going to try to take out this zone.

Daily Technical Forecast

Based on the earlier price action, the direction of the EUR/USD the rest of the day will be determined by trader reaction to a downtrending Gann angle at 1.2008.

A sustained move under 1.2008 will indicate the presence of sellers. Moving back below 1.2002 will indicate the selling is getting stronger. The daily chart is wide open under this level with the next downside targets 1.1915 and 1.1912.

Overtaking 1.2008 and sustaining the rally will signal the presence of buyers. This could lead to a fast move into 1.2036 and 1.2048. The rally could be labored through this area, but it begins to open up to the upside over 1.2068.

The downtrending Gann angle at 1.2068 is the last potential resistance angle before the 1.2088 main top.