EUR/USD Mid-Session Technical Analysis for November 9, 2015

Daily EUR/USD Technical Analysis

The EUR/USD is trading higher at the mid-session. There was no follow-through to the downside after Friday’s sharp break. The early session price action is producing an inside range. This suggests investor indecision, but also impending volatility. The chart pattern also indicates that Friday’s sharp break may have been an exhaustive move since it came at the end of a 16-day break from the most recent top.

The main support is Friday’s low at 1.0705. Based on the current price at 1.0770, minor intraday support levels come in at 1.0738, 1.0732 and 1.0719.

The first upside objective is a major downtrending angle at 1.0814. This angle has provided resistance since October 15. This angle has been penetrated eight times over the past 16 sessions, each time the breakout attempt failed.

The direction of the market today and over the near-term is likely to be determined by trader reaction to this angle. Watch the price action and read the order flow if this angle is tested. This will tell us whether the bulls or the bears are in control.

If there is a breakout over 1.0814 and the move is sustained then the primary target becomes the short-term retracement zone at 1.0889 to 1.0932.

2-Hour EUR/USD Technical Analysis

The main trend is down according to the 2-Hour EUR/USD swing chart. However, the current rally from 1.0705 to 1.0779 suggests that momentum may have shifted to the upside. This is likely profit-taking and short-covering after the prolonged sell-off.

The main range is 1.0897 to 1.0705. The primary upside target is its retracement zone at 1.0801 to 1.0824. Since the main trend is down, look for sellers to show up on a test of this zone.

Today’s intraday rally from 1.0705 is currently testing 1.0782. If a range forms between these two levels then look for a possible retracement into 1.0743 to 1.0734. A test of this zone will tell us whether the EUR/USD has put in an important short-term bottom or gearing up for a break through 1.0705.