EUR/USD Mid-Session Technical Analysis for October 3, 2014

Daily EUR/USD Technical Analysis

Since the EUR/USD is in freefall mode today, there aren’t many levels of support and resistance to look at today.

Shortly after the release of the better-than-expected U.S. Non-Farm Payrolls report, the Euro broke sharply against the dollar, taking it to its lowest level in 25 months.

Although we expect a few technical bounces along the way, the daily chart doesn’t indicate any discernable support until the July 2012 bottom at 1.2042.

On the upside, today’s resistance drops in at 1.2632.

Hourly EUR/USD Technical Analysis

The main trend turned down on the hourly chart when the Forex pair took out the recent bottom at 1.2613.

Earlier in the session, the EUR/USD was slowly trending lower, moving along a downtrending angle from the 1.2698 top. Immediately after the release of the jobs report, the Forex pair plunged into a steeper angle.

Currently the market is walking down an angle moving at a rate of .001 per hour. This hour, the angle comes in at 1.2646. Crossing to the weak side of this angle will put the market in an extremely weak position.

There is room to the upside before the next resistance so traders should be prepared for periodic intraday short-covering rallies.