EUR/USD Mid-Session Analysis for April 24, 2013

Daily Chart

The EUR/USD dipped below the 50% level at 1.2973 on the daily chart, but buyers quickly arrived following a test of 1.2954, triggering a reversal to the upside. The move sets up a potential closing price reversal bottom which could lead to a retracement into 1.3078 to 1.3107 over the near-term.

At the mid-session, the EUR/USD is trading below an uptrending Gann angle at 1.3024. Crossing over to the bullish side of this angle will be a sign of strength. It may even trigger a quick move into a downtrending Gann angle at 1.3081.

If the rally fails late in the session and the market closes under 1.2973 then traders should look for a possible break into the Fibonacci level at 1.2919.

Hourly Chart

The main trend is down on the hourly chart. The main trend will turn up following a rally through the swing top at 1.3033. The formation of the secondary higher top at 1.2973 is a sign that buyers may be taking control and that sentiment is shifting back to the upside.

At the mid-session the EUR/USD is walking up a Gann angle moving higher at a pace of .0005 per hour. This hour it comes in at 1.3004. This angle is currently controlling the strength and direction of the market so a failure to hold it could trigger a sharp break to the downside.

Taking out 1.3033 will turn the main trend to up, but the market is likely to run into resistance at the long-term downtrending Gann angle at 1.3037 before moving higher. Crossing this angle and swing top will be a sign of strength. The 60-minute chart currently indicates there is plenty of room to the upside with the major 50% level at 1.3077 the next likely upside target.