EUR/USD Mid-Session Technical Analysis for October 20, 2014

Daily EUR/USD Technical Analysis

The EUR/USD is posting a small range in light trading at the mid-session. For the third day, the market is trading inside last week’s wide range at 1.2624 to 1.2886. The longer the market stays inside this range, the greater the move once it makes its breakout.

The nearest uptrending Gann angle comes in at 1.2720. This is followed by a short-term pivot at 1.2693. This price is actually controlling the market today. A failure to hold 1.2693 could trigger an acceleration to the downside with 1.2610 the next likely downside target.

A sustained move over 1.2720 will give the market a slight upside bias. Along with last week’s high at 1.2886, resistance drops in at 1.2922.

Hourly EUR/USD Technical Analysis

The EUR/USD is trading relatively flat at the mid-session although there is a slight upside bias developing on the hourly chart.

The main range is 1.2637 to 1.2886. Its retracement zone is 1.2761 to 1.2732. This zone provided support on Friday and earlier today.

Another range is 1.2886 to 1.2705. Its retracement zone is 1.2796 to 1.2817. This zone acted like resistance late last week.

The new short-term range is 1.2836 to 1.2731. The mid-point of this range is 1.2784. This price stopped the rally earlier today. It looks like 1.2784 is the key level to overcome today for the bullish traders.

The tone of the market today into the close will be determined by trader reaction to 1.2784.