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EUR/USD Mid-Session Technical Analysis for December 13, 2016
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The EUR/USD is trading lower at the mid-session. Volume is below average and the range is tight. Volatility is also below average which suggests the major
The EUR/USD is trading lower at the mid-session. Volume is below average and the range is tight. Volatility is also below average which suggests the major players are on the sidelines today ahead of Wednesday’s major U.S. Federal Reserve monetary policy and interest rate announcement.
Technical Analysis
The main trend is up according to the daily swing chart, however, momentum has been to the downside since the November 8 top at 1.0872. The main trend will turn down on a trade through 1.0503. This could trigger a break into the March 13, 2015 main bottom at 1.0462.
Yesterday, traders attempted to shift momentum back to the upside with the formation of a closing price reversal bottom, but buyers haven’t showed up yet to confirm the chart pattern. This suggests that yesterday’s move was likely fueled by short-covering rather than aggressive buying. A trade through 1.0651 will confirm the chart pattern.
The short-term range is 1.0503 to 1.0872. Its 50% level or pivot is 1.0688. This price is controlling the short-term direction of the market.
Forecast
Based on the current price at 1.0609 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to a downtrending angle at 1.0623 and an uptrending angle at 1.0632.
A sustained move under 1.0623 will indicate the presence of sellers. This could trigger a break into the next uptrending angle at 1.0563. This is followed by a support cluster at 1.0525 to 1.0523. This is the last potential support before the 1.0503 main bottom.
A sustained move over 1.0632 will signal the presence of buyers. This could fuel a rally into 1.0651. Taking out this level will confirm the reversal bottom and could trigger an acceleration into the pivot at 1.0688.
Look for a bullish tone to develop over 1.0632 and a bearish tone to develop on a sustained move under 1.0623.
About the Author
James Hyerczykauthor
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.
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