EUR/USD Mid-Session Technical Analysis for November 26, 2015

Daily EUR/USD Technical Analysis

The EUR/USD is trading lower at the mid-session. Trading is light because of today’s U.S. bank holiday.

The main trend is down according to the daily swing chart. The downtrend was reaffirmed when the previous swing bottom at 1.0592 was taken out. A new main top was formed at 1.0688.

The short-term range is 1.0688 to 1.0565. The mid-point or pivot price of this range is 1.0627. Trader reaction to this level will set the tone for the day.

A downtrending angle from the 1.0829 top is also controlling the direction of the market today. It comes in at 1.0629. It also forms an important resistance cluster with the mid-point at 1.0627.

A sustained move under 1.0627 will signal the presence of sellers. The next potential downside target is a steep downtrending angle at 1.0562.

A sustained move over 1.0629 will indicate the presence of buyers. Taking out this level with conviction could trigger a rally into the next downtrending angle at 1.0662.

Look for limited trading action today because the major players are on the sidelines. The early failure at 1.0627 to 1.0629 is giving the market a downside bias at the mid-session.

2-Hour EUR/USD Technical Analysis

The main trend is down according to the 2-Hour EUR/USD chart. However, the closing price reversal bottom at 1.0565 is helping to shift the momentum to the upside.

The main range is 1.0689 to 1.0565. Its retracement zone is 1.0627. This level was taken out when the market spiked to 1.0641 earlier in the session, but since then it has provided resistance.

The new short-term range is 1.0565 to 1.0641. Its retracement level at 1.0603 is currently providing support. Additional support is coming from the 1.0599 closing price reversal bottom.

Based on the current price at 1.0611, the direction of the market the rest of the session is likely to be determined by trader reaction to the 50% level at 1.0603.

A sustained move over 1.0603 will indicate the presence of buyers. The first upside target is 1.0627. This price is likely to act like resistance on the initial test, but it is also the trigger point for an upside breakout.

Volume is expected to be light today because of the U.S. bank holiday. With the major players on the sidelines, don’t be surprised if the EUR/USD sits inside the 1.0603 to 1.0627 range the rest of the session.