EUR/USD Mid-Session Technical Analysis for January 8, 2018

The EUR/USD is trading lower at the mid-session. After four days of consolidation, buyers caved and the Forex pair plunged. The price action suggests investors are respecting the major top at 1.2092.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Today’s price action made 1.2088 a new minor top.

Taking out 1.2088 will signal a resumption of the main trend. This could lead to a quick test of the September 8 main top at 1.2092. This price is a potential trigger point for an acceleration to the upside with the long-term 50% level at 1.2166 the next likely target.

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

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD is likely to be determined by trader reaction to an uptrending Gann angle at 1.1996.

A sustained move under 1.1996 will signal the presence of sellers. This move could generate the downside momentum needed to challenge the short-term 50% level at 1.1912, the long-term Fibonacci level at 1.1886, the short-term Fibonacci level at 1.1870 and the uptrending Gann angle at 1.1866.

Overtaking the angle at 1.1996 and sustaining the move will indicate the presence of buyers. If this move turns momentum around then look for a possible move into 1.2088 to 1.2092.