EUR/USD Mid-Session Technical Analysis for August 15, 2017

The EUR/USD is trading lower at the mid-session. The unwinding of safe-haven positions continues to have a positive effect on the U.S. Dollar. Later today, investors will get the opportunity to react to the latest U.S. retail sales report. This should set the tone for the rest of the session.

Technical Analysis

The main trend is up according to the daily swing chart, but momentum is trending lower. A trade through 1.1689 will turn the main trend to down. A move through 1.1847 will shift momentum to the upside. A trade through 1.1910 will change the main trend to up.

The short-term range is 1.1910 to 1.1689. Its retracement zone at 1.1800 to 1.1826 is resistance.

The main retracement zone is 1.1611 to 1.1540. If the trend changes to down then this area will become the primary downside target.

Forecast

Based on the current price at 1.1737, the direction of the EUR/USD the rest of the session will be determined by trader reaction to the support cluster at 1.1730 to 1.1729.

A sustained move over 1.1730 will indicate the return of buyers. This could drive the EUR/USD back into an uptrending angle at 1.1769.

Overtaking 1.1769 could generate the upside momentum needed to challenge the 50% level at 1.1800, followed by a downtrending angle at 1.1820 and a Fibonacci level at 1.1826.

A sustained move under 1.1729 will target an angle at 1.1709. This is followed by the main bottom at 1.1689.

Taking out 1.1689 will change the main trend to down. This is the trigger point for an acceleration into the major 50% level at 1.1611. This is followed by an uptrending angle at 1.1602.

Basically, for the rest of the session, look for an upside bias on a sustained move over 1.1730 and for a downside bias under 1.1729.