EUR/USD Mid-Session Technical Analysis for March 24, 2016

The EUR/USD is trading lower at the mid-session. Pressure is building to the downside over concerns about the direction of U.S. interest rates. Only a week after the Fed put out a dovish monetary policy statement and economic assessment, several Fed members called for a possible rate hike in April. This drove up U.S. interest rates, making the U.S. Dollar a more attractive investment while putting pressure on the Euro.

Technically, the main trend is up according to the daily swing chart. However, momentum has been to the downside since March 17.

The main range is 1.0821 to 1.1342. Its retracement zone at 1.1082 to 1.1020 is the primary downside target.

Since the March 17 top at 1.1342, the EUR/USD has been walking down a steep downtrending angle, moving .004 per day. This angle is at 1.1142 today. Trader reaction to this angle will determine the direction of the Euro the rest of the session.

Crossing to the weak side of the angle at 1.1142 will put the EUR/USD in a bearish position. The daily chart is wide open to the downside under this angle with the next target the 50% level at 1.1082.

A sustained move over 1.1142 will not mean the market is turning bullish, but it will indicate the presence of buyers. These could be profit-takers. They could create enough upside momentum to fuel a retracement back to a pair of angles at 1.1221 and 1.1242.

Watch the price action and read the order flow at 1.1142 the rest of the session. Trader reaction to this will tell us if the selling is getting stronger, or if buyers are regaining control.