EUR/USD Mid-Session Technical Analysis for June 5, 2018

The EUR/USD is trading lower at the mid-session. The Forex pair is trading inside yesterday’s range which suggests investor indecision and impending volatility. It may be going through the transition phase of the chart pattern where investors decide whether they want to try to make a secondary higher bottom, or attempt to continue the downtrend.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. The EUR/USD is far from changing the main trend to up and it’s having trouble overcoming a key retracement zone.

The minor trend is up. This trend is controlling the momentum. A trade through 1.1745 will signal a resumption of the minor trend. A move through 1.1617 will change the minor trend to down and shift momentum to the downside.

The main range is 1.1997 to 1.1510. Its retracement zone at 1.1753 to 1.1811 is the primary upside target. Since the main trend is down, sellers may show up on a test of this zone to defend the trend.

The short-term range is 1.1830 to 1.1510. Its 50% level or pivot at 1.1670 is support.

Another short-term range is 1.1510 to 1.1745. Its retracement zone at 1.1628 to 1.1600 is another downside target zone.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the EUR/USD will be determined by trader reaction to the pivot at 1.1670.

A sustained move over 1.1670 will indicate the presence of buyers. If this creates enough upside momentum, we could see a move back to 1.1745, followed by 1.1753. The latter is a potential trigger point for an acceleration into 1.1811.

A sustained move under 1.1670 will signal the presence of sellers. This is a potential trigger point for an acceleration into 1.1628, 1.1617 and 1.1600.

A test of 1.1628 to 1.1600 could draw the attention of aggressive counter-trend buyers.