EUR/USD Mid-Session Technical Analysis for August 13, 2015

Daily EUR/USD Technical Analysis

The EUR/USD is trading lower at the mid-session. There was no follow-through to the upside after yesterday’s strong surge, giving long investors an excuse to book profits.

The main trend is up according to the daily swing chart. The trend turned up on a trade through 1.1129 earlier in the week. A break back below this price will suggest that the last surge to 1.1213 was likely triggered by short-covering rather than aggressive buying.

Sellers may have also come in at 1.1213 in defense of the July 10 main top at 1.1216.

The EUR/USD accelerated to the downside earlier in the session when support failed at 1.1156. Based on the current price at 1.1116, this angle is new resistance.

The next downside target is a price cluster at 1.0976 to 1.0967. Watch for a technical bounce on the first test of this area. If 1.0967 fails as support then look for an acceleration to the downside.

Based on the short-term range of 1.0847 to 1.1213, the primary downside target is a retracement zone at 1.1030 to 1.0987.

Based on the current price at 1.1116, look for a bullish tone to develop on a sustained move over 1.1156 and a bearish tone on a sustained move under 1.0967.

2-Hour EUR/USD Technical Analysis

The main trend is up according to the 2-Hour swing chart. However, momentum has shifted to the downside because of the bearish closing price reversal top at 1.1213. This top occurred slightly above the July 13 top at 1.1198 and slightly below the July 10 top at 1.1216.

The new main range is 1.0960 to 1.1213. Its retracement zone at 1.1086 to 1.1057 is the primary downside target. Since the main trend is up on the 2-Hour chart, buyers should come in to defend the trend on a test of this zone, creating the possibility of a technical bounce.

If a short-term range develops between 1.1213 and 1.1106 then look for a possible intraday retracement into its pivot at 1.1160.