The EUR/USD is trading higher at the mid-session, but well-off its high. The early price action indicates traders should expect to see increased volatility due to geopolitical concerns.
Daily Technical Analysis
The main trend is down according to the daily swing chart, however, momentum has shifted to the upside.
The main trend will turn up on a trade through 1.2555. A move through 1.2153 will signal a resumption of the downtrend.
The main range is 1.2555 to 1.2153. Its retracement zone is 1.2354 to 1.2401. This zone is controlling the near-term direction of the EUR/USD. Holding above this zone will mean momentum is trending higher while helping to maintain a short-term upside bias. Based on the current price, traders should treat this zone as support.
The major support zone is 1.2235 to 1.2160. Additional support is a long-term 50% level at 1.2166.
Daily Technical Forecast
Based on the current price at 1.2408 and the earlier price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 1.2401.
A sustained move over 1.2401 will indicate the presence of buyers. This could trigger a move into a downtrending Gann angle at 1.2425. This price is a potential trigger point for an acceleration to the upside with the next target a potential resistance cluster at 1.2490.
A sustained move under 1.2401 will signal the presence of sellers. This could trigger an acceleration to the downside with the next target the 50% level at 1.2354. Momentum will shift to the downside under this level with the next target angle coming in at 1.2313.
Essentially, we’re looking for a strong upside bias to develop on a sustained move over 1.2425 and for a downside bias to develop on a sustained move under 1.2401.