The EUR/USD is trading slightly lower shortly before the U.S. opening. The market is trading inside yesterday’s range while straddling yesterday’s close. This indicates investor indecision and impending volatility. This could also mean upside momentum is slowing and the bias is shifting to the downside.
Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.1910 will signal a resumption of the uptrend.
Today’s session also begins with the Forex pair in the window of time for a potentially bearish closing price reversal top. This will occur when 1.1910 is taken out but the market closes lower for the session.
It’s not too early to think about a potential correction. The main range is 1.1312 to 1.1910. If there is a sell-off then its retracement zone at 1.1611 to 1.1540 becomes the primary downside target.
Forecast
Based on the current price at 1.1847, the nearest support is a pair of uptrending Gann angles at 1.1758 and 1.1732. These angles have been guiding the EUR/USD higher for about a month.
Look for a technical bounce on the first test of the uptrending angles. A failure to hold these angles will indicate the selling pressure is getting stronger and the buying is getting weaker. If selling increases on the move then don’t be surprised by an acceleration to the downside with the first major target a 50% level at 1.1611.
It’s a toss-up right now. If buyers continue to drive the market higher then look for them to go after 1.1910. If sellers take control then look for a possible move into at least 1.1758 to 1.1732.