EUR/USD Mid-Session Technical Analysis for April 14, 2014

Daily EUR/USD Technical Analysis

The EUR/USD is under pressure at the mid-session after a gap-lower opening confirmed Friday’s closing price reversal top at 1.3905. This chart pattern typically leads to the start of a 2 to 3 day break equal to at least 50% of the last rally. The last rally produced a move from 1.3672 to 1.3905. This created a retracement zone and downside target at 1.3788 to 1.3761.

Late last week, a downtrending angle from the 1.3966 top stopped the rally. This angle at 1.3911 today is the main resistance. Early in the session, the market opened on the weak side of a downtrending angle at 1.3912. This attracted fresh selling pressure that drove the market though a downtrending angle at 1.3856.

Breaking 1.3856 puts the EUR/USD in a weak position, setting up a break into an uptrending angle at 1.3792. This angle forms a loose support cluster with the 50% level at 1.3788. A failure to hold this area could trigger a further break into 1.3761.

Hourly EUR/USD Technical Analysis

The main trend is down on the hourly chart. The main trend turned down early in the session when the EUR/USD crossed the main bottom at 1.3863. The move was reaffirmed when 1.3815 was taken out. The new main top is 1.3833.

The short-term range is 1.3779 to 1.3905. The EUR/USD is trading on the bearish side of its pivot at 1.3842.

The main range is 1.3672 to 1.3905. This forms a retracement zone and next downside target at 1.3788 to 1.3761.

Look for a bearish tone into the close as long as the EUR/USD stays under 1.3833 and especially the pivot at 1.3842.

Watch for profit-taking on the initial test of 1.3788. If sellers continue to press the market then look for the move to continue into the Fibonacci level at 1.3761.