EUR/USD Mid-Session Technical Analysis for January 23, 2018

The Euro is trading slightly lower against the U.S. Dollar shortly before the U.S. opening. The Forex pair traded lower earlier in the session before clawing back all of its losses. It’s have a little trouble turning positive for the session, but this is likely due to limited buying interest ahead of the European Central Bank’s monetary policy statement on Thursday.

At 1117 GMT, the EUR/USD is trading 1.2255, down 0.0006 or -0.05%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, the Forex pair has been struggling with upside momentum since forming a potentially bearish closing price reversal top on January 17.

A trade through 1.2323 will signal a resumption of the uptrend. A move through 1.2164 will indicate the selling is getting stronger.

The short-term range is 1.2323 to 1.2164. Its 50% level or pivot at 1.2244 should control the direction of the Forex pair today.

On the downside, the first support is a long-term 50% level at 1.2166.

The main range is 1.1915 to 1.2323. Its retracement zone at 1.2119 to 1.2071 is the primary downside target.

Daily Technical Forecast

Based on the current price at 1.2255, the direction of the EUR/USD is likely to be determined by trader reaction to the price cluster at 1.2243 to 1.2244.

A sustained move over 1.2244 will signal the presence of buyers. If this move generates enough upside momentum, we could see a test of a pair of downtrending Gann angles at 1.2283 and 1.2303. The latter is the last potential resistance angle before the 1.2323 main top.

A sustained move under 1.2244 will indicate the presence of sellers. The first target is an uptrending Gann angle at 1.2216. We could see a technical bounce on the first test of this angle. If it fails then look for an acceleration to the downside.

A trade through 1.2216 could trigger a sharp break into 1.2266. This is followed by another support cluster at 1.2119 to 1.2115.