EUR/USD Mid-Session Technical Analysis for January 26, 2018

The EUR/USD is trading higher at the mid-session. There was no follow-through to the downside, following yesterday’s closing price reversal top. Therefore, the chart pattern wasn’t confirmed.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.2537 will negate the closing price reversal top and signal the resumption of the uptrend.

A trade through 1.2363 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 day correction into a short-term retracement zone.

On the upside, the first target is the major long-term Fibonacci level at 1.2597.

The short-term range is 1.2164 to 1.2537. Its first downside target is its retracement zone at 1.2351 to 1.2307. Since the main trend is up, we could see a technical bounce on the first test of this zone.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the short-term 50% level at 1.2351.

A sustained move over 1.2351 will signal the presence of buyers. This could create the upside momentum needed to challenge or even overtake the top at 1.2537. This is followed closely by a major Fibonacci level at 1.2597.

A sustained move under 1.2351 will indicate the presence of sellers. This is followed by the short-term Fibonacci level at 1.2307 and the uptrending Gann angle at 1.2276.