EUR/USD Mid-Session Technical Analysis for October 30, 2014

Daily EUR/USD Technical Analysis

The main trend turned down on the daily chart when the EUR/USD broke through the swing bottom at 1.2613. The new main top is 1.2770. A trade through this level will turn the main trend to up on the daily chart.

The main range is 1.2500 to 1.2886. The pivot formed by this range is 1.2693. This price is controlling the short-term direction of the market. Look for a downside bias as long as the market continues to trade under the pivot.

Additional resistance is on a downtrending angle from the 1.2994 top at 1.2674.

The primary downside target is the recent main bottom at 1.2500. Traders may lean toward this price today, but not likely to trade down to it. Most major market players are on the sidelines ahead of Friday’s major consumer inflation date from the Euro Zone.

Hourly EUR/USD Technical Analysis

Short-covering turned the main trend to up on the hourly chart when the EUR/USD crossed the swing top at 1.2598. The new main and closing price reversal bottom is at 1.2547.

The short-term range is 1.2639 to 1.2547. The retracement zone formed by this range at 1.2593 to 1.2604 was the first upside target. This was reached earlier today. The retracement zone is new support.

The main range is 1.2770 to 1.2547. Its retracement zone at 1.2658 to 1.2684 is the primary upside target. If traders decide to continue to pare positions later today then look for them to take a run at this retracement zone.

The tone of the market into the close will be determined by trader reaction to the short-term pivot at 1.2604 to 1.2593.