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EUR/USD Mid-Session Technical Analysis for January 11, 2018

By:
James Hyerczyk
Published: Jan 11, 2018, 11:48 UTC

Based on the current price at 1.1942 and the earlier price action, the first support is 1.1912 and the nearest resistance is a downtrending angle at 1.1988.

EUR/USD

The EUR/USD is trading flat shortly before the U.S. opening, the release of the ECB Monetary Policy Meeting Accounts and the U.S. Producer Price Index report. Bullish traders are hoping the ECB sheds some light on its plans to reduce stimulus. Dollar bulls are hoping the PPI report comes in better-than-expected.

EURUSD
Daily EUR/USD

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since January 4.

A trade through 1.2088 will signal a resumption of the uptrend. This could trigger a breakout over 1.2092.

A move through 1.1915 will indicate the selling is getting stronger. The nearest bottoms come in at 1.1736 and 1.1717.

The main range is 1.1736 to 1.2088. Its retracement zone at 1.1912 to 1.1870 is the primary downside target. This zone straddles a major Fibonacci level at 1.1886. A test of this area could draw the attention of buyers since the main trend is up.

The short-term range is 1.2088 to 1.1915. Its retracement zone at 1.2002 to 1.2022 is the primary upside target. This area stopped the rally on a test of this zone on Wednesday.

The 1.2002 to 1.2022 zone is important because aggressive counter-trend buyers will be trying to form a potentially bearish secondary lower top. Trend traders are going to try to drive the EUR/USD through this zone in an effort to make 1.1915 a new higher bottom.

Daily Technical Forecast

Based on the current price at 1.1942 and the earlier price action, the first support is 1.1912 and the nearest resistance is a downtrending angle at 1.1988.

Taking out 1.1912 will signal the presence of sellers. This could trigger a labored break with targets at 1.1896, 1.1886 and 1.1870. Since the trend is up, any one of these levels could stop the break. Look for an acceleration to the downside, however, if 1.1870 fails as support.

Overtaking and sustaining a rally over 1.1988 will indicate the presence of buyers. The rally could also be labored because of potential resistance at 1.2002, 1.2022 and 1.2038.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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