EUR/USD Mid-Session Technical Analysis for August 12, 2015

Daily EUR/USD Technical Analysis

The EUR/USD is trading higher at the mid-session. The market surged earlier in the session before running into a downtrending resistance angle at 1.1159.

Based on the current price at 1.1133, the direction of the market the rest of the session will be determined by trader reaction to 1.1159. A sustained move over this level is likely to lead to a test of the July 10 top at 1.1216.

The inability to overcome 1.1159 will signal the presence of sellers. This could lead to a move into the next downtrending angle at 1.1101. The market could accelerate to the downside if this angle fails with the next target a steep uptrending angle from the 1.0847 bottom. This angle has provided guidance since August 5 so breaking it will damage the structure of the rally. This angle comes in at 1.1047 today.

The main trend turned up on the daily chart earlier in the session when the swing top at 1.1129 was taken out. The new main bottom is 1.0847.

Look for a bullish tone into the close on a sustained move over 1.1159 and a bearish tone to develop on a sustained move under 1.1101.

2-Hour EUR/USD Technical Analysis

The main trend is up according to the 2-Hour swing chart.

The new main range is 1.0960 to 1.1157. The direction of the market into the close will be determined by trader reaction to 1.1157.

A sustained move over this level is likely to create enough upside momentum to challenge the July 13 top at 1.1198 and the July 10 top at 1.1216.

If buyers can’t take out 1.1157 then look for a possible shift in momentum to the downside. The first downside target is a retracement zone at 1.1059 to 1.1035.

The daily chart suggests there is plenty of room to the downside if 1.1035 is taken out with conviction then look for a possible acceleration into the main bottom at 1.0960. A trade through this level will turn the main trend to down on the 2-Hour chart.

Simply put, everything hinges on whether New York trades want to pay up and chase the EUR/USD higher, or play for a pull-back into a value zone.