EUR/USD Mid-Session Technical Analysis for May 25, 2018

The EUR/USD hit its lowest level since November 13 shortly after the U.S. opening on Friday, driven by worries over a deepening economic slowdown in the Euro Zone. Also pressuring the single-currency was the insistence of the far-right League, a partner in Italy’s planned coalition government, that Eurosceptic economist Paolo Savona be appointed economy minister.

Trading at 1.1669 at 1200 GMT, the EUR/USD is in a position to post its sixth straight week of losses for the first time since January 2015.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. After posting an inside move on Thursday, the downtrend resumed when sellers took out the low at 1.1676.

The minor trend is also down. The minor trend will change to up on a trade through 1.1830.

The new short-term range is 1.1830 to 1.1661. Its 50% level or pivot at 1.1746 is new resistance.

The main range is 1.1997 to 1.1661. Its retracement zone at 1.1829 to 1.1869 is the primary upside target.

Daily Swing Chart Technical Forecast

The momentum is clearly to the downside. The daily chart indicates that if this were to continue we could see an eventual test of the main bottom at 1.1553. There is no major support between the current price and this level.

On the upside, minor resistance is a previous bottom at 1.1712 and the short-term pivot at 1.1746.

The only pattern that can save the EUR/USD from further weakness is a closing price reversal bottom. This makes yesterday’s close at 1.1720 an important number to watch especially late in the session.