EUR/USD Mid-Session Technical Analysis for June 22, 2018

The EUR/USD is trading higher on Friday. The Forex pair followed through to the upside earlier in the session, confirming yesterday’s closing price reversal bottom and signaling a shift in momentum to the upside.

We could see some volatility at 1345 GMT with the release of the Flash Manufacturing PMI and Flash Services reports. Yesterday, the EUR/USD rallied in response to a weaker-than-expected U.S. Philadelphia Federal Reserve manufacturing report.

Flash Manufacturing PMI is expected to come in at 56.3, down slightly from 56.4. Flash Services PMI is forecast at 56.4, down a little from the previously reported 56.8.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1851 will change the main trend to up. A move through 1.1509 will signal a resumption of the downtrend.

The minor trend is up. It turned up on the trade through 1.1645 earlier today. This move also shifted momentum to the upside. The rally also confirmed yesterday’s closing price reversal bottom which means we could see a 2-3 day counter trend rally.

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

The short-term range is 1.1851 to 1.1509. Its retracement zone at 1.1680 to 1.1720 is the primary upside target.

Two 50% levels at 1.1680 and 1.1681 form a resistance cluster. The Fibonacci level at 1.1720 falls inside the two 50% levels, making it a valid upside target.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD on Friday will be determined by trader reaction to the downtrending Gann angle at 1.1611.

A sustained move over 1.1611 will indicate the presence of buyers. This could create the upside momentum needed to challenge 1.1680 to 1.1681. Look for a technical bounce on the first test of this area.

Overtaking 1.1681 could trigger an acceleration into the Fib level at 1.1720, followed by the downtrending Gann angle at 1.1731. This is followed by the 50% level at 1.1753.

A failure to hold the angle at 1.1611 will signal the presence of sellers. This could trigger a break into 1.1593. If this price fails then look for the selling to possibly extend into 1.1509.