EUR/USD Mid-Session Technical Analysis for June 4, 2014

Daily EUR/USD Technical Analysis

The EUR/USD is posting a modest gain at the mid-session. Volume is below average and the market appears to be range bound. Based on the price action, it looks as if the market has already made its range for the day.

The market is trading on the strong side of a major downtrending angle from the 1.3993 top at 1.3613. Holding above this angle will give the market a slight upside bias into the close.

The short-term range is 1.3585 to 1.3649. The pivot price of this range is 1.3617. Like the downtrending angle, holding above this pivot will help maintain the upside bias the rest of the session.

Hourly EUR/USD Technical Analysis

The main trend is up on the hourly chart. The main trend turned up earlier in the session on a breakout above the last swing top at 1.3616. The new main bottom is 1.3600.

Since the EUR/USD is trading in a range on the daily chart, the emphasis is on the hourly retracement zones. The main range is 1.3586 to 1.3647. The retracement zone formed by this range at 1.3617 to 1.3609 provided some support earlier in the session when the market traded down to 1.3600.

The second retracement zone is 1.3623 to 1.3629. The EUR/USD tested this zone when it traded up to 1.3638.

The current range is 1.3600 to 1.3638. Its retracement zone is 1.3619 to 1.3615. This zone is likely the next downside target. Since volume is so light today, the EUR/USD may drift lower into this zone into the close.