EUR/USD Mid-Session Technical Analysis for November 27, 2015

Daily EUR/USD Technical Analysis

The EUR/USD is trading lower at the mid-session. The market opened steady before plunging to the downside.

The main trend is down according to the daily swing chart. The short-term range is 1.0688 to 1.0565. Its 50% level or pivot is 1.0627. This price is controlling the short-term direction of the market today.

Based on the current price at 1.0580, the nearest resistance is a downtrending angle at 1.0609. This is followed by the pivot at 1.0627 and a short-term downtrending angle at 1.0642. The angles and pivot price are spread wide apart. This indicates that volatility will be high today.

If the downside momentum continues under 1.0609 then look for sellers to go after Wednesday’s low at 1.0565. Taking out this level will signal a resumption of the downtrend with the April 13 main bottom at 1.0520 the next likely target.

2-Hour EUR/USD Technical Analysis

The main trend is down according to the 2-Hour EUR/USD swing chart. The main range is 1.0689 to 1.0565. Its 50% or pivot price is 1.0627.

The short-term range is 1.0565 to 1.0641. Its 50% or pivot price is 1.0603.

After trading for several hours inside the two 50% levels at 1.0603 to 1.0627, volatility returned today. Buyers came in early, taking out 1.0627, but failing to drive the market through 1.0641, stopping at 1.0637.

Sellers came in hard after the EUR/USD broke back under 1.0627. The selling pressure increased when the second 50% level at 1.0603 was taken out with conviction. The move accelerated when the minor reversal at 1.0599 was broken. All of these levels are new resistance.

If the downside momentum continues then look for the move to extend into the main bottom at 1.0565. Taking out this level will negate the closing price reversal bottom on the 2-Hour chart. This could lead to further downside pressure into 1.0520.

Look for a downside bias the rest of the session as long as the EUR/USD remains under 1.0603. Overtaking this level will not mean the trend is getting ready to turn higher, but it could lead to another round of sideways trading unless 1.0627 is overcome.