EUR/USD Mid-Session Technical Analysis for June 19, 2018

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Published: Jun 19, 2018, 13:20 UTC

Based on the early price action and the current price at 1.1557, 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 1.1611. Basically, a sustained move over 1.1611 will give the EUR/USD an upside bias, and a sustained move under 1.1543 will continue the downside bias.

The EUR/USD is under pressure on Tuesday due to a dispute in Germany’s governing coalition and renewed concerns over the European Central Bank’s plans to hold interest rates steady into 2019.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend resumed earlier today when sellers took out the closing price reversal bottom at 1.1543.

The minor trend is also down. Today’s price action helped form a new minor top at 1.1645. Taking out this level will change the minor trend to up and shift momentum to the upside.

On the upside additional resistance levels are 50% points at 1.1681 and 1.1753.

Daily EUR/USD

Daily Technical Forecast

Based on the early price action and the current price at 1.1557, 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 1.1611.

A sustained move under 1.1611 will indicate that sellers are still in control. If this continues to create strong downside momentum then sellers are likely to press the EUR/USD through 1.1543.

The daily chart is wide open under 1.1543 so we could see a pickup in selling volume. The next major downside target is the July 5, 2017 main bottom at 1.1312.

Overcoming and sustaining a rally over 1.1611 will signal the return of buyers. This will also put the EUR/USD in a position to post another potentially bullish closing price reversal bottom.

The EUR/USD could begin to pick up strength over 1.1611 with potential targets coming in at 1.1681 and 1.1731.

Trader reaction to 1.1543 could also be used as an indicator of strength and weakness. A sustained move over this level will indicate that aggressive counter-trend buyers are coming in to support the EUR/USD. Taking it out however for a second time today will indicate the selling pressure is getting stronger.

Basically, a sustained move over 1.1611 will give the EUR/USD an upside bias, and a sustained move under 1.1543 will continue the downside bias.

About the Author

James Hyerczykauthor

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.