EUR/USD Mid-Session Technical Analysis for January 16, 2018

The EUR/USD is trading lower shortly after the U.S. opening. The Forex pair is trading inside yesterday’s range which suggests investor indecision and impending volatility.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.2296 will signal a resumption of the uptrend. The EUR/USD isn’t close to change the trend to down, but it is in the window of time for a potentially bearish closing price reversal top.

The nearest support is a major 50% level at 1.2166. This price is controlling the longer-term direction of the market.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD today will be determined by trader reaction to 1.2296 and 1.2187.

A sustained move over 1.2296 will indicate the presence of buyers. Crossing to the strong side of the steep uptrending Gann angle at 1.2315 will put the Forex pair in an extremely bullish position.

A sustained move under 1.2187 will signal the presence of sellers. The first target is 1.2166. If this level fails then look for the selling to extend into a pair of uptrending Gann angles at 1.2116 and 1.2115. These two angles form a support cluster. Since the main trend is up, buyers are likely to come in on a test of this area.