EUR/USD Mid-Session Technical Analysis for January 5, 2018

The EUR/USD is trading lower shortly before the U.S. opening and the release of the U.S. Non-Farm Payrolls report at 1330 GMT. The Forex pair is also posting an inside move which suggests investor indecision and impending volatility.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.2088 will signal a resumption of the uptrend. However, the trigger point for an acceleration to the upside is the September 8, 2017 top at 1.2092.

The upside target is a major 50% level at 1.2166.

The short-term range is 1.1736 to 1.2088. Its retracement zone is 1.1912 to 1.1870. Inside this range is another major Fibonacci level at 1.1886.

Daily Technical Forecast

Currently, the EUR/USD is trading 1.2050. This puts the Forex pair between the upside breakout level at 1.2092 and an uptrending Gann angle at 1.1976.

The direction of the market today will be determined by momentum and it will be generated by the U.S. jobs report.

If the momentum is to the upside then look for buyers to try to take out 1.2092. This is the potential trigger point for an acceleration into 1.2166 over the near-term.

If the momentum shifts to the downside then sellers will try to drive the EUR/USD into the uptrending Gann angle at 1.1976. Since the trend is up, we could see a technical bounce on the first test of this angle.

If 1.1976 fails as support then look for an eventual retracement into the 50% level at 1.1912.