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EUR/USD Mid-Session Technical Analysis for August 25, 2015

By:
James Hyerczyk
Updated: Aug 25, 2015, 09:26 UTC

Daily EUR/USD Technical Analysis The EUR/USD is trading lower after posting a strong rally on Monday. The massive sell-off in the U.S. equity markets

Daily EUR/USD

Daily EUR/USD Technical Analysis

Daily EUR/USD
Daily EUR/USD

The EUR/USD is trading lower after posting a strong rally on Monday. The massive sell-off in the U.S. equity markets helped boost the Euro because it is now a funding currency. Investors had been borrowing in Euro and putting their money to work in the U.S. markets. When they sold their positions, they had to pay back the loans in Euro, driving the single currency higher.

The main range is the October 15, 2014 top at 1.2886 and the March 13, 2015 bottom at 1.0462. Its retracement zone is 1.1674 to 1.1960. Yesterday’s high at 1.1712 was slightly above the 50% level at 1.1674. This price is new resistance today along with yesterday’s high.

Yesterday’s high is also a trigger point for an acceleration to the upside with the Fibonacci level at 1.1960 a potential upside target.

The first downside target is a steep uptrending angle at 1.1407. Look for support on the first test of this angle. It is also a trigger point for a steep sell-off with the next target a 50% level at 1.1280. This is followed by a Fibonacci level at 1.1177 and another uptrending angle at 1.1127.

2-Hour EUR/USD Technical Analysis

2-Hour EUR/USD
2-Hour EUR/USD

The main trend is up on the 2-Hour chart, but momentum is to the downside.

If a new short-term range forms between 1.1712 and 1.1512 then look for a possible retracement back to 1.1612 to 1.1636. This zone is important because sellers are going to try to form a secondary lower top on a test of it. If successful then look for the start of a sell-off. Buyers are going to try to take it out in an effort to make 1.1512 a new higher bottom.

On the downside, the first target is a long-term uptrending angle at 1.1487 this time period. Breaking to the bearish side of this angle will signal the presence of sellers.

The intermediate range is 1.1240 to 1.1712. Its retracement zone at 1.1476 to 1.1420 is the first downside target.

If this zone fails then look for a possible test of the main range at 1.1365 to 1.1283. 

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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