EUR/USD Mid-Session Technical Analysis for May 18, 2018

The Euro is trading lower shortly after the U.S. opening. The single-currency is posting an inside move for a second day, which indicates investor indecision and impending volatility.

At 1141 GMT, the EUR/USD is trading 1.1783, down 0.0013 or -0.11%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1998 will change the main trend to up.

A move through 1.1763 will signal a resumption of the downtrend.

The short-term range is 1.1998 to 1.1763. Its retracement zone at 1.1881 to 1.1908 is the first upside target. Since the main trend is down, sellers are likely to come in on the first test of this zone. They are going to try to form a secondary lower top.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the EUR/USD today will be determined by trader reaction to 1.1763 and 1.1854.

A sustained move under 1.1763 will indicate the presence of sellers. This could trigger a break into a series of old bottoms at 1.1736, 1.1717 and 1.1712. This move could slow down the selling, but we could see an acceleration to the downside if 1.1712 is taken out with conviction. This could lead to an eventual test of the November 7 bottom at 1.1553.

Holding above 1.1763 will signal the presence of buyers. Taking out 1.1854 will make 1.1763 a new minor bottom. This could lead to a test of the short-term retracement zone at 1.1881 to 1.1908.