EUR/USD Mid-Session Technical Analysis for October 10, 2014

Daily EUR/USD Technical Analysis

The EUR/USD is trading lower at the mid-session, following yesterday’s potentially bearish closing price reversal top. The top at 1.2791 was formed inside the 1.2747 to 1.2805 retracement zone. Additional resistance is a downtrending angle at 1.2814 today.

The early session weakness was triggered when the EUR/USD crossed to the bearish side of a steep uptrending angle at 1.2660. Overtaking this angle later will put the market in a strong position.

The short-term range is 1.2500 to 1.2791. The pivot price created by this range at 1.2646 is controlling the short-term direction of the market today. Holding above it will mean that buyers are coming in to support the market.

A sustained move through 1.2646 could trigger a break into the next support angle at 1.2580. This is followed by additional angles at 1.2540 and 1.2520.

The tone of the market the rest of the session will be determined by trader reaction to the pivot at 1.2646.

Hourly EUR/USD Technical Analysis

The main trend is down on the hourly chart. The market will have to take out the last two main tops at 1.2708 and 1.2715 in order to turn the main trend to up.

The main range is 1.2500 to 1.2791, making its retracement zone at 1.2646 to 1.2611 the best downside target. If this market is setting up for another upside move, buyers will show up on a test of this zone.

Look for a strong close if 1.2646 holds as support and a weak close if 1.2611 fails as support. Holding between these two numbers will indicate a neutral close.