Euro (€) / US Dollar ($) (EUR/USD) Mid-Session Update for March 13, 2013

Daily Chart

The EUR/USD traded through the recent low at 1.2955 after the release of a better-than-expected U.S. Retail Sales report. The move to 1.2922 makes 1.3134 a new main top. The main trend will remain down on the daily chart until this top is violated.

Besides the swing chart, three downtrending Gann angles are also controlling the strength and the direction of the market. These angles are at 1.3119, 1.3133 and 1.3151. A breakout over these angles will be a strong sign that the trend is getting ready to turn higher.

Until either the Gann angles or the swing top is violated, traders should look for downside pressure with 1.2876 the next target. This price is 50% of the July 2012 to February 2013 range. It represents a natural profit-taking target so don’t be surprised if buyers begin to step in following a test of this level.

Hourly Chart

The main trend is down on the hourly chart. Based on the swing chart, a trade through 1.2970 will turn the main trend to up. Based on the short-term range of 1.2922 to 1.2970, the next potential downside target is 1.2946 to 1.2940. Holding a test of this retracement zone will form a potentially bullish secondary higher bottom.

From the 1.2922 bottom, uptrending Gann angle support comes in at 1.2952 and 1.2937 during this hour. These angles are moving up .0005 and .00025 respectively each hour.

If the main trend does turn up then look for the market to complete a retracement of the 1.3064 to 1.2922 range. This makes 1.2993 to 1.3010 the next potential upside target. A downtrending Gann angle from the 1.3064 top at 1.2999 this hour is also a potential upside target.