EUR/USD Mid-Session Technical Analysis for October 21, 2014

Daily EUR/USD Technical Analysis

The EUR/USE is trading lower at the mid-session, but the market remains inside last week’s 1.2624 to 1.2886 range. Volatility could be building inside this range which will eventually lead to a power breakout over 1.22886 or under 1.2624.

The uptrending support angle from 1.2500 comes in today at 1.2740. If this price level is broken then look for a steep break into the 50% level at 1.2693. The market opens up under this level with another angle at 1.2620 the next likely target.

On the upside, the first target is last week’s high at 1.2886. This is followed by a major downtrending angle from the 1.3432 top at 1.2912.

If there is an eventual breakout to the upside then the main objective is the major 50% level at 1.2966.

Hourly EUR/USD Technical Analysis

The sharp sell-off earlier in the session turned the main trend to down on the hourly chart when the EUR/USD took out 1.2788. The new main top is 1.2839.

The market is currently testing a former bottom at 1.2754 while rapidly approaching another main bottom at 1.2731.

Earlier today, the Euro also broke to the bearish side of a retracement zone at 1.2796 and 1.2817.

Just last hour, the market broke through another 50% level at 1.2755. A sustained move under this level could trigger a further move into the Fibonacci level at 1.2724.

The tone of the EUR/USD will be determined by trader reaction to 1.2755. Regaining this level later in the session could trigger a short-covering rally late in the session. A sustained move under this level could lead to a weak close into 1.2724.