EUR/USD Mid-Session Technical Analysis for January 19, 2017

The EUR/USD is trading a little higher at the mid-session and ahead of the European Central Bank announcement. Yesterday, the Euro plunged after Fed Chair Janet Yellen hinted about a number of interest rate hikes in 2017. The U.S. also reported sold consumer inflation figures on Wednesday.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.0719 will signal a resumption of the uptrend.

The main range is 1.0872 to 1.0339. Its retracement zone is 1.0606 to 1.0668. The market is currently trading inside this zone. Trader reaction to this zone will determine the longer-term trend of the Euro.

The new short-term range is 1.0339 to 1.0719. Its retracement zone at 1.0529 to 1.0484 is the primary downside target,

Forecast

Based on the current price at 1.0654, the direction of the market today is likely to be determined by trader reaction to the main Fibonacci level at 1.0668.

A sustained move over 1.0668 will indicate the presence of buyers. This could trigger enough upside momentum to challenge this week’s high at 1.0719 and a downtrending angle at 1.0732. This angle is the trigger point for a breakout.

The inability to overcome 1.0668 will signal the presence of sellers. This could generate enough downside momentum to challenge a 50% level at 1.0606 and a pair of angles at 1.0592 and 1.0579.

Watch the price action and read the order flow at 1.0668 today. This will tell us if the bulls or the bears are in control.