EUR/USD Mid-Session Technical Analysis for June 6, 2018

The Euro is trading higher shortly before the U.S. opening. The Euro has been garnering support since early Tuesday after Bloomberg, citing sources, reported that the European Central Bank could conclude its next policy meeting this month with a public announcement on when its quantitative easing program would end.

At 1012 GMT, the EUR/USD is trading 1.1767, up 0.0050 or +0.43%.

Traders are saying the expected move by the ECB is designed to offset last week’s negative news from the political turmoil in Italy which rattled investors enough to send the Euro to a 10-month low against the U.S. Dollar.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. We still have a long way to go before it changes to up. The trend will change to up on a trade through 1.1997. Momentum, however, is trending higher.

The minor trend is up. This is what is triggering the shift in momentum to the upside.

The main range is 1.1997 to 1.1510. Its retracement zone at 1.1753 to 1.1811 is currently being tested. This zone is controlling the near-term direction of the Euro.

The first downside target is the 50% level or pivot at 1.1670. This is followed by the short-term retracement zone at 1.1643 to 1.1612. These area are new support.

Daily Swing Chart Technical Forecast

Based on the early trade and the current price at 1.1774, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the 50% level at 1.1753.

A sustained move over 1.1753 will signal the presence of buyers. If this move generates enough upside momentum, we could see a drive into the Fibonacci level at 1.1811, followed by the minor top at 1.1830.

A sustained move under 1.1753 will indicate the presence of sellers. The daily chart starts to open up to the downside under this level with the next target coming in at 1.1670.