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EUR/USD Mid-Session Technical Analysis for February 28, 2017

By:
James Hyerczyk
Published: Feb 28, 2017, 12:24 UTC

The EUR/USD is trading higher shortly before the release of the U.S. Fourth Quarter Preliminary GDP report. It is expected to show the economy grew at a

EUR/USD

The EUR/USD is trading higher shortly before the release of the U.S. Fourth Quarter Preliminary GDP report. It is expected to show the economy grew at a rate of 2.1%. The Conference Board Consumer Confidence report is expected to come in at 111.3. Later tonight, President Trump speaks before a joint session of Congress at 0200 GMT.

EURUSD
Daily EUR/USD

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the closing price reversal bottom at 1.0493 on February 22. A trade through this bottom will negate the chart pattern and signal a resumption of the downtrend.

A trade through 1.0630 will change the minor trend to up with the next target the minor bottom at 1.0679.

The key area to watch is formed by a pair of 50% levels at 1.0583 and 1.0606. The market is currently trading inside this zone. It is controlling the near-term direction of the Euro.

The main range is 1.0828 to 1.0493. Its retracement zone at 1.0660 to 1.0700 is the primary upside target. Since the main trend is down, sellers could come in on a test of this zone.

The short-term range is 1.0493 to 1.0630. Its retracement zone at 1.0555 to 1.0540 is the primary downside target. This area held as support yesterday. Aggressive counter-trend buyers are trying to form a potentially bullish secondary higher bottom.

Forecast

Based on the current price at 1.0600, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the 50% level at 1.0606.

A sustained move over 1.0606 will signal the presence of buyers. This could trigger a rally into 1.0630 then a downtrending angle at 1.0648, followed closely by the main 50% level at 1.0660.

A sustained move under 1.0606 will indicate the presence of sellers. The next targets are 1.0583 and 1.0573. If this angle fails as support then look for possible support at 1.0555, 1.0540 and 1.0533.

Watch the price action and read the order flow at 1.0606. This will tell us if the buyers or sellers are in control.

About the Author

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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