EUR/USD Mid-Session Technical Analysis for May 30, 2016

The EUR/USD is trading higher at the mid-session. Earlier in the session, the market fell to 1.1097, its lowest level since March 16, before rebounding to 1.1142. Volume is light because of today’s U.S. Memorial Day bank holiday.

The main trend is down according to the daily swing chart. The trend will turn up on a trade through the last swing top at 1.1242. The current price action suggests that momentum may be shifting to the upside. This puts the market in a position to form a potentially bullish closing price reversal bottom.

The main range is 1.0821 to 1.1616. Its retracement zone is 1.1219 to 1.1125. After trading to the weak side of this zone earlier in the session, the market is currently straddling the lower, or Fibonacci level of this zone at 1.1125.

Based on the current price at 1.1140, two key areas come into play, a downtrending angle at 1.1142 and the Fib level at 1.1125.

Look for the upside bias to continue on a move through the short-term downtrending angle at 1.1142. This could create enough upside momentum to challenge the next downtrending angle at 1.1192.

The inability to overcome 1.1142 will indicate the presence of sellers. A move through the Fib level at 1.1125 will indicate the selling is getting stronger. This could drive the market into the long-term uptrending angle at 1.1106 and today’s low at 1.1097.

The daily chart is wide open under 1.1097 so if this level is taken out with better-than-average selling volume, we could see the start of an acceleration to the downside.

Watch the price action and read the order flow at 1.1242 today. Trader reaction to this level will tell us if the bulls are taking control.