EUR/USD Mid-Session Technical Analysis for January 9, 2018

The EUR/USD is trading lower at the mid-session. Investors continue to take profits after the more than two-week rally from December 12 to January 4. The Forex pair is under pressure despite data that showed Germany’s industrial production and exports were both stronger-than-expected in November, showing continued rising growth in Europe’s largest economy.

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. This is followed by the September 8 main top at 1.2092 and the major 50% level at 1.2166.

The main range is 1.1736 to 1.2088. Its retracement zone at 1.1912 to 1.1870 is the primary downside target. This zone is straddling a major Fibonacci level at 1.1886, making it a valid downside target also. Since the main trend is up, buyers could show up on a test of this area.

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the steep downtrending Gann angle at 1.1968. The market has been walking down this angle for three days.

A sustained move under 1.1968 will indicate the presence of sellers. This could generate the downside momentum needed to test a price cluster formed by retracement levels at 1.1912, 1.1886, 1.1870 and an uptrending Gann angle at 1.1876. Since the main trend is up, buyers could show up on a test of any of these levels to stop the break.

Taking out 1.1870 could trigger an acceleration to the downside.

Overtaking 1.1968 and sustaining the rally will signal the return of buyers.