EUR/USD Mid-Session Technical Analysis for June 18, 2018

The EUR/USD is trading slightly higher on Monday with the Forex pair recovering from early session weakness. It’s posting an inside move with traders respecting Friday’s potentially bullish closing price reversal bottom. This suggests investor indecision following last week’s steep sell-off and impending volatility.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, Friday’s closing price reversal bottom may have shifted momentum back to the upside. A trade through 1.1628 will confirm the chart pattern and signal the shift in momentum.

The first upside target is the 50% level at 1.1681, followed by another 50% level at 1.1753.

A trade through 1.1543 will negate the closing price reversal bottom and signal a resumption of the downtrend with 1.1510 the next major target. The EUR/USD opens up to the downside under this level, setting up a potential acceleration to the downside with the July 5, 2017 bottom at 1.1312 the next target.

Daily 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 Friday’s high at 1.1628.

A sustained move under 1.1628 will indicate the presence of sellers. If it generates enough downside momentum, we could see a retest of last week’s low at 1.1543. If the buying and selling is balanced then look for a rangebound trade.

Breaking 1.1543 will negate the reversal bottom. This could trigger a quick move into 1.1510. Taking out this level will indicate increased selling pressure. This could trigger the start of an acceleration to the downside. The daily chart indicates there is plenty of room to tumble over the near-term with 1.1312 the next target.

A sustained move over 1.1628 will signal the return of buyers. This could create the upside momentum needed to drive the EUR/USD into a resistance cluster formed by a 50% level at 1.1681 and a steep downtrending Gann angle at 1.1691. Look for sellers on the first test of this area.

Taking out 1.1691 will indicate the buying is getting stronger with the next major resistance cluster coming in at 1.1753 to 1.1771.