EUR/USD Mid-Session Technical Analysis for November 23, 2015

Daily EUR/USD Technical Analysis

The EUR/USD is trading lower at the mid-session. Earlier in the session there was a trade through the swing bottom at 1.0616. This reaffirmed the downtrend while making 1.0762 a new main top.

After taking out the previous bottom at 1.0616, the EUR/USD found support at 1.0600 which was essentially on a steep downtrending angle at 1.0602. This triggered a rebound rally.

Based on the current price at 1.0632, the EUR/USD is now in a position to form a potentially bullish closing price reversal bottom. This will occur on a close over 1.0642. The direction of the market into the close today will be determined by trader reaction to this price.

A sustained move over 1.0642 could create enough upside momentum to trigger a strong rally into the nearest downtrending angles at 1.0682 and 1.0689.

A sustained move under 1.0642 will indicate that sellers are still in control. This could trigger a retest of the previous support at 1.0616 or the downtrending angle at 1.0602.

Crossing to the weak side of the steep angle at 1.0602 will put the EUR/USD in an extremely weak position with the next target 1.0549.

2-Hour EUR/USD Technical Analysis

The main trend is down according to the 2-Hour EUR/USD swing chart. However, the market has been building a support base since forming the closing price reversal bottom at 1.0600.

Taking out the intraday high at 1.0643 with conviction will be a sign of strength. The next potential breakout area is today’s high at 1.0645. This move could trigger an acceleration to the upside.

The new short-term range is 1.0762 to 1.0600. A sustained move over 1.0645 could fuel a move into its retracement zone at 1.0681 to 1.0700.

Watch the price action and read the order flow at 1.0645 the rest of the session. According to the 2-hour chart, trader reaction to this price will tell us if the short are in control, or if the buyers are taking control.