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EUR/USD Mid-Session Technical Analysis for November 6, 2015

By:
James Hyerczyk
Updated: Nov 6, 2015, 11:25 UTC

Daily EUR/USD Technical Analysis The EUR/USD is trading slightly lower at the mid-session. Volume is light as traders brace themselves for a volatile

Daily EUR/USD

Daily EUR/USD Technical Analysis

Daily EUR/USD
Daily EUR/USD

The EUR/USD is trading slightly lower at the mid-session. Volume is light as traders brace themselves for a volatile price session. The catalyst behind the expected increased volume and volatility will be the U.S. Non-Farm Payrolls report. This report will be released at 8:30 a.m. ET.

Look for a possible two-sided trade following the release of the jobs report because traders are going to react to both the headline number and the average hourly earnings number. It is possible that one number is going to be bullish and the other bearish. The most important number for Fed interest rate hike purposes will be the average hourly earnings figure. It is expected to come in at 0.2%. This will make it a 2.2% annual rate.

The key angle to watch today is a long-term downtrending angle at 1.0854. Trader reaction to this angle will determine the direction of the market today.

A sustained move over 1.0854 will indicate the presence of buyers. This may create enough upside momentum to test a short-term retracement level at 1.0953 to 1.0981.

The next target over 1.0981 is a minor top at 1.1072. This is followed by a downtrending angle at 1.1174.

A sustained move under 1.0854 will signal the presence of sellers. This may create enough downside momentum to test the closing price reversal bottom at 1.0833. Taking out this level will negate the chart pattern. This could trigger a further break into the July 20 main bottom at 1.0808.

The daily chart is wide open under 1.0808 with the next potential target the April 13 bottom at 1.0520. Based on normal volatility, however, this price is highly unlikely to be reached today.

2-Hour EUR/USD Technical Analysis

2-Hour EUR/USD
2-Hour EUR/USD

The main trend is up according to the 2-Hour EUR/USD swing chart.

The short-term range is 1.0833 to 1.0897. Its pivot price is 1.0865. Trader reaction to this level will tell us whether the bulls or the bears are in control.

A sustained move over 1.0865 will signal the presence of buyers. This could drive the market into 1.0897. Taking out this level will trigger a resumption of the uptrend with the next target a retracement zone at 1.0953 to 1.0981.

A sustained move under 1.0865 will indicate the presence of sellers. The first downside target is the main bottom at 1.0833. A trade through this level will turn the main trend to down. This could create enough downside momentum to drive the Forex pair into the July 20 main bottom at 1.0808. This bottom is also a trigger point for an acceleration to the downside.

Watch the price action and read the order flow at 1.0865 today. Look for a bullish tone over this level and a bearish tone under this level. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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