EUR/USD Mid-Session Technical Analysis for April 26, 2017

The EUR/USD is trading lower at the mid-session after an earlier attempt to breakout to the upside failed to attract enough buyers to sustain the move. Position-squaring ahead of the European Central Bank meeting on Thursday was probably behind the price action.

Today is the seventh day up from the recent bottom at 1.0601. This puts the Euro in the window of time for a potentially bearish closing price reversal top. The formation of the chart pattern will not necessarily mean the trend is getting ready to change to down, but it could indicate the start of a 2 to 3 day correction.

Technical Analysis

The main trend is up according to the daily swing chart. Based on the earlier price action, the resistance is a major Fibonacci level at 1.0932. After this price, the next resistance is a major 50% level at 1.1125 and a main top at 1.1299.

On the downside, the best support is a 50% level at 1.0819.

Forecast

Based on the current price at 1.0894 and the earlier price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the steep uptrending angle at 1.0881.

Holding 1.0881 will indicate the presence of buyers. This could generate enough upside momentum to challenge the next resistance at 1.0932. Overtaking this level will indicate the buying is getting stronger with the next target angle coming in at 1.1005.

If 1.0881 fails as support then we could be looking at the start of a steep break with the first target 1.0819, followed by an uptrending angle at 1.0741.

Watch the price action and read the order flow at 1.0881 all session. Trader reaction to this angle will set the tone for the day.

Remember that a close below 1.0957 will form a potentially bearish closing price reversal top.