EUR/USD Mid-Session Technical Analysis for April 27, 2017

The EUR/USD is trading flat as investors await the latest news from the European Central Bank. This usually means that traders should expect volatility and a possible two-sided trade immediately after the ECB decision before investors choose a direction.

Technical Analysis

The main trend is up according to the daily swing chart. The EUR/USD is not in a positon to change the trend to down, but it is in the window of time for a potentially bearish closing price reversal top.

The EUR/USD is currently sitting inside a major retracement zone, bounded by 1.0819 and 1.0932. Trader reaction to this zone will likely determine the longer-term direction of the Forex pair.

Forecast

Based on the current position of the EUR/USD, inside the retracement zone and on the weak side of an uptrending angle a 1.0921, it looks as if there is selling pressure.

A sustained move under 1.0921 will indicate the presence of sellers. This could drive the market into the 50% level at 1.0819 and the uptrending angle at 1.0761.

Overcoming the uptrending angle at 1.0921 will signal the presence of buyers, but overtaking the Fib level at 1.0932 will likely fuel a breakout into the next resistance angle at 1.1001. This is another trigger point for a possible surge into 1.1150.

Watch the price action and read the order flow at 1.0921 all session. This angle is controlling the direction and the tone of the EUR/USD.