EUR/USD Mid-Session Technical Analysis for June 12, 2018

The EUR/USD is trading nearly flat shortly before the release of the U.S. consumer inflation report. The CPI is expected to come in at 0.20% and the Core CPI at 0.01%. A stronger-than-expected report will be supportive for the U.S. Dollar. However, the trade could be muted today ahead of Wednesday’s U.S. Federal Reserve interest rate decision and monetary statement and Thursday’s European Central Bank monetary policy decision.

Daily Swing Chart Technical Analysis

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

The minor trend is up. A trade through 1.1727 will change the minor trend to down. This will also shift momentum to the downside. Taking out 1.1822 will signal the return of buyers, while a drive through 1.1841 will indicate the buying is getting stronger.

The main range is 1.1997 to 1.1510. Its retracement zone is 1.1753 to 1.1811. This zone is controlling the near-term direction of the market. The EUR/USD is currently trading inside this zone.

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

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to 1.1811 and 1.1753.

A sustained move over 1.1811 will indicate the presence of buyers. This could lead to a labored rally with minor targets at 1.1822 and 1.1841. The latter is the trigger point for an acceleration to the upside with 1.1997 a potential near-term target.

A sustained move under 1.1753 will signal the presence of sellers. The first target is 1.1727. This level is a potential trigger point for an acceleration into at least 1.1676 over the near-term.