EUR/USD Mid-Session Technical Analysis for March 29, 2018

The Euro is trading slightly lower shortly before the U.S. opening and a mountain of U.S. economic data including the Core PCE Price Index at 1230 GMT. It is expected to show a 0.2% rise in inflation. Personal Spending is expected to come in at 0.2% and Personal Income is expected to rise by 0.4%.

At 0900 GMT, the EUR/USD is trading 1.2306, down 0.0001 or -0.01%.

Additionally, investors will get the opportunity to react to Weekly Unemployment Claims, Chicago PMI and Revised University of Michigan Consumer Sentiment.

Volume could be light ahead of Friday’s bank holiday and the long Easter holiday week-end.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top on March 27 and its subsequent confirmation on Wednesday.

A trade through 1.2239 will change the main trend to down.

The main range is 1.2153 to 1.2476. Its retracement zone at 1.2314 to 1.2276 is currently being tested. Trader reaction to this zone is likely to determine the longer-term direction of the market.

The short-term range is 1.2239 to 1.2476. Its retracement zone is 1.2330 to 1.2357. This zone is acting like resistance.

Combining the two retracement zones makes 1.2314 to 1.2330 the key area to watch today.

Daily Technical Forecast

Based on the current price at 1.2306 and the earlier price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the uptrending Gann angle at 1.2309.

A sustained move under 1.2309 will indicate the presence of sellers. This could trigger an acceleration to the downside. The first target is a support cluster at 1.2276 to 1.2274. Since the trend is up, we could see a technical bounce on the first test of this area.

Look for another acceleration into 1.2239 if 1.2274 fails as support.

A sustained move over 1.2309 will signal the presence of buyers. Look for a labored rally into 1.2314 then 1.2330. This level is the trigger point for an acceleration into 1.2357, followed by a steep downtrending Gann angle at 1.2396.