EUR/USD Mid-Session Technical Analysis for October 24, 2014

Daily EUR/USD Technical Analysis

The EUR/USD is trading in a tight and narrow range today. Based on this week’s price action, the market is likely to finish the week with a downside bias. The catalyst behind most of this week’s selling pressure has been talk of the European Central Bank buying corporate debt.

Today, the EUR/USD is straddling an uptrending angle at 1.2650. Holding above this angle could trigger a rally into the short-term pivot at 12690.

If 1.2650 fails as support then look for a drive into yesterday’s low at 1.2613. A sustained move through this price will likely lead to the next uptrending angle at 1.2575. This is the last support angle before the main bottom at 1.2500.

The direction of the market today will be determined by trader reaction to 1.2650.

Hourly EUR/USD Technical Analysis

Over the past two days, the main trend on the daily chart has reversed trend a few times. Currently, the main trend is down. A trade through 1.2664 will turn the main trend to up. A trade through 1.2634 will fuel a resumption of the downtrend.

The short-term range is 1.2613 to 1.2676. The 50% level of this range at 1.2645 is controlling the short-term direction of the market. Trader reaction to this level will set the tone into the close today.

The intermediate range is 1.2739 to 1.2613. Its retracement zone at 1.2676 to 1.2691 is the next target should there be a breakout to the upside. If the momentum is strong enough over 1.2691, the market could rally as high at 1.2726. This may take place over the next couple of days if a solid support base is built.

A long-term downtrending angle from 1.2839 is also controlling the short-term direction of the market. This angle is at 1.2647 this hour. Holding above this angle will also put the market on the bullish side of the short-term pivot. This price action will also give the EUR/USD a bullish tone into the close.

Look for a bearish tone under 1.2645 and a possible acceleration to the downside under 1.2634. A bullish tone may develop over 1.2645 with a possible acceleration to the upside over 1.2664.