EUR/USD Mid-Session Technical Analysis for June 11, 2018

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 main Fibonacci level at 1.1811.
James Hyerczyk
EUR/USD
EUR/USD

The EUR/USD is trading higher shortly before the U.S. opening.  Volume is relatively light after the conclusion of the unfruitful G-7 conference and ahead of monetary policy announcements by the U.S. Federal Reserve on Wednesday and the European Central Bank on Thursday.

At 1031 GMT, the EUR/USD is trading 1.1785, up 0.0017 or +0.14%.

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Daily EUR/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher.

The minor trend, which controls the momentum, is up. A trade through 1.1841 will indicate the buying is getting stronger. A trade through 1.1727 will change the minor trend to down and shift momentum to the downside.

The main range is 1.1997 to 1.1510. The EUR/USD is currently trading inside its retracement zone at 1.1753 to 1.1811. This zone is controlling the near-term direction of the Forex pair.

The short-term range is 1.1510 to 1.1841. If the selling pressure increases, we could see a test of its retracement zone at 1.1676 to 1.1636.

Daily Swing Chart 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 main Fibonacci level at 1.1811.

A sustained move under 1.1811 will indicate the presence of sellers. This could lead to a quick test of the 50% level at 1.1753. Crossing to the weak side of this level will indicate the selling is getting stronger with the next target the minor bottom at 1.1727. Taking out this level could trigger an acceleration to the downside with 1.1676 the next major target.

Overtaking and sustaining a move over 1.1811 will signal the presence of buyers. This could generate a fast rally into the minor top at 1.1841. There is plenty of room to the upside so taking out 1.1841 could trigger an acceleration. This could lead to an eventual test of the main top at 1.1997.

Basically, we’re looking for a bullish bias to develop on a sustained move over 1.1811 and for a bearish bias to develop on a sustained move under 1.1753. Holding inside these prices will indicate investor indecision and impending volatility.

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