EUR/USD Mid-Session Technical Analysis for April 24, 2017

The EUR/USD gapped higher on Monday. The rally fell short of taking out the March 27 top at 1.0906, reaching an intraday high at 1.9032. It is currently trading at 1.0853.

Technical Analysis

The main trend is up according to the daily swing chart. A trade though 1.0906 will reaffirm the uptrend.

The major range is 1.1299 to 1.0339. Its retracement zone is 1.0819 to 1.0932. The Euro is currently trading inside this zone. Trader reaction to this zone will determine the longer-term trend of the market. A sustained move over the Fibonacci level at 1.0932 will indicate the presence of strong buying. A sustained move under the 50% at 1.0819 will signal that sellers are still running the show.

Forecast

If intraday momentum continues then buyers are going to try to drive the EUR/USD into 1.0906 then 1.0932. Overtaking 1.0932 with strong buying volume could create the upside momentum needed to drive the market into the next downtrending angle at 1.1010.

On the downside, the first support is a 50% level at 1.0819. This is followed by a steep uptrending angle at 1.0801. Since the trend is up, we could see buyers show up on the first test of this area.

If 1.0801 fails to hold then it will signal the presence of strong sellers. If this creates enough downside momentum then look for an eventual move into the next uptrending angle, currently at 1.0701.

Today is all about momentum. The rest of the week will be all about how investors react to 1.0819 and 1.0932.