EUR/USD Mid-Session Technical Analysis for December 7, 2017

The EUR/USD is trading lower on Thursday on increased appetite for risky assets and on optimism that the U.S. will successfully pass a tax reform bill and avert a potential shutdown of the government on Saturday.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down earlier in the week when sellers took out the previous main bottom at 1.1809.

The EUR/USD is also trading on the weak side of a major 50% level at 1.1823.

The main range is 1.1712 to 1.1961. Its retracement zone is 1.1837 to 1.1807.

Combining the retracement levels creates a wall of resistance at 1.1807 to 1.1837. Trading on the weak side of area is helping to give the EUR/USD is strong downside bias.

Daily Technical Forecast

The daily swing chart is also indicating the EUR/USD has plenty of room to the downside with the next major target coming in at 1.1712, followed by 1.1702.

Look to stay short unless the EUR/USD can overcome 1.1807 and sustain the move. Start preparing for an acceleration to the downside.