EUR/USD Mid-Session Technical Analysis for March 8, 2018
The EUR/USD is trading higher after the European Central Bank announced it was leaving its benchmark interest rates unchanged and would continue its asset purchase program until September.
The bank said that “the Governing Council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases,” which is set to last until September 2018.
At the ECB last monetary policy meeting in January, policymakers agreed that it was too early to make changes to the current level of stimulus, but admitted there could be changes in “early” 2018.
For now the quantitative easing program will continue at the pace of 30 billion Euros per month. The bank also said that stimulus could go beyond September if economic conditions change.
Daily Technical Analysis
The main trend is down according to the daily swing chart, but momentum is trending higher. A trade through 1.2444 will indicate the buying is getting stronger. The next main top is 1.2555.
The main range is 1.2555 to 1.2153. Its retracement zone is 1.2401 to 1.2354. This zone is controlling the longer-term direction of the market. Traders should treat this area as support. Holding above it will help maintain the developing upside bias.
The short-term range is 1.2153 to 1.2444. If there is a sell-off then its retracement zone at 1.2299 to 1.2264 will become the primary downside target.
Daily Technical Forecast
Based on the early 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. Overtaking the downtrending Gann angle at 1.2415 will indicate the buying is getting stronger. This is followed closely by 1.2444. This price is the trigger point for an acceleration to the upside with the next target angle coming in at 1.2485.
A sustained move under 1.2401 will signal the presence of sellers. The first support is a price cluster at 1.2354 to 1.2353.
The uptrending Gann angle is the trigger point for an acceleration to the downside with 1.2299 the first target.