EUR/USD Mid-Session Technical Analysis for May 1, 2018

The EUR/USD is trading lower shortly after the opening of the U.S. session. The U.S. Dollar is being supported by the divergence between the monetary policies of the U.S. Federal Reserve and the European Central Bank.

On Wednesday, the Fed is likely to leave its benchmark interest rate unchanged, but the hawkish language in its monetary policy statement will likely point to a quarter-point rate hike in June and another one later in the year.

At the same time, weaker-than-expected economic data in the Euro Zone is helping to raise doubts about when the European Central Bank will normalize its monetary policy.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. If the downside momentum continues then we could see a move into the January 9 main bottom at 1.1915 on May 3 to May 4.

The market isn’t close to turning the main trend to up, but the Forex pair is in the window of time to post a closing price reversal bottom.

The minor trend is also down. The minor trend will change to up on a move through 1.2138.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the EUR/USD the rest of the day is likely to be determined by trader reaction to a pair of Gann angles at 1.2016 and 1.2013.

Holding above 1.2016 will indicate the return of buyers. If the buying is strong enough, we could see a move into another uptrending Gann angle at 1.2117.

A sustained move under 1.2013 will signal that the selling is getting stronger. This is the Gann angle that could guide the EUR/USD into 1.1915 before the end of the week.