EUR/USD Mid-Session Technical Analysis for August 2, 2017

The EUR/USD is trading slightly higher shortly before the U.S. opening. The Forex pair posted a new high for the week before pulling back below Monday’s close. Traders should look for volatility following the release of the latest ADP private sector job’s report at 1215 GMT.

Technical Analysis

The main trend is up according to the daily swing chart. There is no resistance until the major 50% level at 1.2166. However, the prolonged rally in terms of price and time has put the EUR/USD in the window of time for a closing price reversal top. This higher-high, lower-close chart pattern will not mean the trend is getting ready to turn down, but it could signal a shift in momentum, which could lead to a 2 to 3 day correction.

Forecast

Like I said, there is no resistance, just look at the long-term charts so a chart pattern is going to tell us when the selling is greater than the buying. So start looking for an intraday higher-high, lower-close on the hourly chart, for example.

The nearest support is a pair of uptrending angles at 1.1738 and 1.1712. These angles have been guiding the market higher since early July. We could see support on the first test of these angles, but if they fail then look out to the downside because this would signal the start of a major correction. The next uptrending angle comes in at 1.1512 today and is moving up at a rate of .001 per day.