EUR/USD Mid-Session Technical Analysis for June 21, 2018

Rising Treasury yields and increased demand for risk is helping to put downside pressure on the EUR/USD shortly after the European opening. U.S. Treasury yields are rising as investors shed their safe haven positions in reaction to the easing of tensions over a trade war between the United States and China. This is helping to make the U.S. Dollar a more attractive investment.

At 0705 GMT, the EUR/USD is trading 1.1545, down 0.0031 or -0.26%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1531 will signal a resumption of the downtrend. A move through 1.1851 will change the main trend to up.

The minor trend is also down. A trade through 1.1645 will change the minor trend to up. This will also shift momentum to the upside.

The nearest resistance is a pair of 50% levels at 1.1681 and 1.1753.

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD on Thursday is likely to be determined by trader reaction to this week’s low at 1.1531.

A sustained move over 1.1531 will indicate the presence of buyers. If this move can generate enough upside momentum, we could see a rally into the minor top at 1.1645 and the steep downtrending Gann angle at 1.1651.

Crossing to the strong side of the downtrending Gann angle and taking out the minor top will indicate the buying is getting stronger. This could lead to a test of the first 50% level at 1.1681.

A break through 1.1531 will signal the presence of sellers. This could trigger a break into a steep downtrending Gann angle at 1.1451. Crossing to the weak side of this angle will put the EUR/USD in a bearish position with 1.1312 the next major downside target.

Essentially, 1.1531 has to hold or the EUR/USD could start to collapse.