EUR/USD Mid-Session Technical Analysis for May 11, 2018

The EUR/USD is trading higher shortly before the U.S. opening. The strength is being driven by a continuation of yesterday’s rally that was fueled by weaker than expected U.S. consumer inflation data.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1822 will signal a resumption of the downtrend. Earlier today, a new main bottom was formed at 1.1822.

The EUR/USD is currently straddling a former bottom at 1.1915.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the former bottom at 1.1915.

A sustained move over 1.1915 will indicate the presence of buyers. Taking out yesterday’s high at 1.1946 will indicate the buying is getting stronger. If this move generates enough upside momentum, we could see a drive into the 2017 close at 1.2001. This is followed closely by a Fibonacci level at 1.2037.

A sustained move under 1.1915 will signal the presence of sellers. If the selling pressure is strong enough, we could see a retest of this week’s low at 1.1822. Taking out this level will indicate the selling is getting stronger with a pair of bottoms at 1.1736 and 1.1717 the next likely downside targets.