EUR/USD Mid-Session Technical Analysis for May 24, 2018

The EUR/USD is trading higher shortly before the U.S. opening. The Forex pair is being supported by a softer U.S. Dollar as investors continue to react to yesterday’s dovish Fed meeting minutes. The Euro’s gains are being limited by concerns over economic slowdown in the Euro Zone and political risks in Italy. Later today, investors will get the opportunity to react to the European Central Bank Monetary Policy Meeting Accounts.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1676 will signal a resumption of the downtrend. The main trend will change to up on a move through 1.1997.

The minor trend is also down. A trade through 1.1830 will change the minor trend to up.

The short-term range is 1.1830 to 1.1676. Its 50% level or pivot is at 1.1753. This price is controlling the direction of the market today.

The main range is 1.1997 to 1.1676. Overtaking the pivot could drive the EUR/USD into its retracement zone at 1.1837 to 1.1874.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the EUR/USD is likely to be determined by trader reaction to the former bottom at 1.1712.

A sustained move over 1.1712 will indicate the presence of buyers. If this generates enough upside momentum, we could see a move into the short-term pivot at 1.1753.

We could see a technical bounce on the first test of 1.1753, but if buyers can overtake this level, don’t be surprised by an acceleration to the upside. This could eventually lead to a test of the minor top at 1.1830 and the short-term retracement zone at 1.1837 to 1.1874. Since the main trend is down, sellers are likely to show up on a test of this area.

A sustained move under 1.1712 will signal the presence of sellers. This could trigger a move into this week’s low at 1.1676. Look for a possible acceleration to the downside if this low fails. The daily chart indicates there is plenty of room to the downside with the main bottom at 1.1553 the next likely target.