Daily EUR/USD Technical Analysis The EUR/USD rallied early in the session, helping to make 1.2613 a new main bottom. The main range is 1.2500 to 1.2886.
Daily EUR/USD Technical Analysis
The EUR/USD rallied early in the session, helping to make 1.2613 a new main bottom.
The main range is 1.2500 to 1.2886. Its pivot at 1.2693 is controlling the short-term direction of the market. The Euro is straddling this pivot today.
The resistance angle from the 1.3432 top stopped the rally at 1.2704. Taking out this angle could trigger a rally into another short-term pivot at 1.2750.
On the downside, the nearest support angle is at 1.2660. This is followed by the main bottom at 1.2613 and another angle at 1.2580.
The recent tight trading ranges suggests impending volatility. The fundamentals suggest the bias is to the downside, but many traders may be waiting for the Fed statement on Wednesday and Friday’s Euro Zone CPI data, before making their move.
Hourly EUR/USD Technical Analysis
Because of the tight trading ranges, the EUR/USD is trapped between a series of retracement levels.
The main range is 1.2839 to 1.2613. The retracement zone formed by this range is 1.2726 to 1.2753. This is currently the best resistance zone.
On the downside, the first 50% support level is 1.2674. This is followed by another 50% level at 1.2664.
Since the main trend is up on the hourly chart, buyers may decide to come in if the market tests 1.2674 to 1.2664. If this zone fails as support then look for a possible acceleration to the downside with 1.2634 and 1.2613 potential targets.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.