EUR/USD Mid-Session Technical Analysis for December 22, 2016

The EUR/USD is trading higher at the mid-session ahead of the release of a slew of U.S. economic data. The major reports today include Durable Goods, Final GDP and Weekly Unemployment Claims. The minor reports include Core PCE Price Index, Personal Spending and Personal Income.

Core Durable Goods are expected to come in at 0.2%, far below the previous 0.8%. Durable Goods Orders are forecast at -4.9%, well below the previous 4.6%.

Quarterly Final Gross Domestic Product is expected to come in at 3.3%, slightly above the 3.2% estimate.

Technical Analysis

The main trend is down according to the daily swing chart. The main trend will turn up on a trade through 1.0670. Momentum shifted to the upside with the formation of a new swing bottom at 1.0352. A trade through this price will signal a resumption of the downtrend.

The short-term range is 1.0670 to 1.0352. Its 50% level or pivot comes in at 1.0511. Since the main trend is down, we may see a technical bounce on the initial test of this level.

Forecast

Based on the current price at 1.0468, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at 1.0472.

A sustained move over 1.0472 will indicate the presence of buyers. This could trigger an acceleration to the upside into the short-term pivot at 1.0511. This is followed by the downtrending angle at 1.0550.

A sustained move under 1.0472 will signal the presence of sellers. This could fuel a quick break into the price cluster at 1.0432 to 1.0430. The daily chart opens up to the downside with the next two angles coming in at 1.0392 and 1.0372.

Basically, look for a strong upside bias to begin on a sustained move over 1.0472 and a strong downside bias on a sustained move under 1.0430.

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