EUR/USD Mid-Session Technical Analysis for April 18, 2017

The EUR/USD is trading higher at the mid-session. After forming a secondary higher bottom at 1.0601, the main trend turned up on the daily chart.

Technical Analysis

The main trend is up according to the daily swing chart. It turned up on a move through 1.0677. The next target is a minor high at 1.0689.

The new main bottom is 1.0601, followed by another main bottom at 1.0569. A trade through these levels will turn the main trend to down.

The main range is 1.0524 to 1.0906. Its retracement zone is 1.0715 to 1.0670. After trading several weeks below this zone, the market is currently trading inside this zone. This is another sign that buyers are returning.

The short-term range is 1.0906 to 1.0569. Its retracement zone at 1.0738 to 1.0777 is the next major upside target.

The combination of the two retracement zones makes 1.0715 to 1.0738 the area to watch today.

Forecast

Based on the current price at 1.0687, the key support area is 1.0670 to 1.0664.

A sustained move over 1.0670 will indicate the presence of buyers. This could generate enough upside momentum to challenge 1.0715, 1.0738 then 1.0746. The angle at 1.0746 is the trigger point for an acceleration into the Fib level at 1.0777.

A sustained move under the angle at 1.0664 will signal the presence of sellers. The daily chart is open under this angle with the next target the main bottom at 1.0601, followed by an uptrending angle at 1.0594 and the next main bottom at 1.0569.

Now that the trend has changed to up, we could see an acceleration to the upside with 1.0715 the first target. Look for a downside bias to begin on a move under 1.0664.