EUR/USD Mid-Session Technical Analysis for August 6, 2015

Daily EUR/USD Technical Analysis

The EUR/USD is trading lower at the mid-session. On Wednesday, the Forex pair posted a potentially bullish closing price reversal bottom. The chart pattern was confirmed earlier today on a trade through 1.0921, but the follow-through rally died at 1.0943.

Based on the current price at 1.0894, the nearest support comes in at 1.0873. This is followed by the closing price reversal bottom at 1.0847 and another uptrending angle at 1.0841. This is the last major uptrending angle before the 1.0808 main bottom.

A downtrending angle comes in at 1.0836. Crossing to the weak side of this angle will put the market in bearish position.

On the upside, the nearest target is an uptrending angle at 1.0938. This angle is a potential trigger point for an upside breakout. A new range has formed between 1.1129 and 1.0847. Its retracement zone at 1.0988 to 1.1021 is the primary upside target.

With the market currently trading at 1.0894, look for a bullish tone into the close on a sustained move over 1.0938 and a bearish tone to develop on a sustained move under 1.0873. Holding in between 1.0938 and 1.0873 will indicate trader indecision ahead of Friday’s U.S. Non-Farm Payrolls report.

2-Hour EUR/USD Technical Analysis

The main trend is down on the 2-Hour swing chart.

The main range is 1.1113 to 1.0847. Its retracement zone is 1.0980 to 1.1011.

The intermediate range is 1.0987 to 1.0847. Its retracement zone is 1.0917 to 1.0934. Earlier today, the EUR/USD crossed to the bullish side of this zone, but the buying wasn’t strong enough to hold on to the gains. The rally ended with a potentially bearish closing price reversal top.

The new short-term range is 1.0847 to 1.0943. Its retracement zone at 1.0895 to 1.0884 is currently being tested. Trader reaction to this zone is likely to determine the direction of the market into the close.

Look for an upside bias to develop on the 2-Hour chart into the close on a sustained move over 1.0895 and a bearish tone to develop on a sustained move under 1.0884.