EUR/USD Mid-Session Technical Analysis for July 10, 2017

The EUR/USD is trading lower shortly before the U.S. opening. The trade is light due to the lack of fresh economic data. Sellers seem to be guided by profit-taking, position-squaring and a delayed-reaction to Friday’s stronger-than-expected U.S. jobs data.

Technical Analysis

The main trend is up according to the daily swing chart. Friday’s rally stopped just short of the June 29 top at 1.1445 at 1.1439. A trade through the main top will signal a resumption of the uptrend. The main trend will change to down on a trade through 1.1312.

The short-term range is 1.1445 to 1.1312. Its 50% level or pivot is 1.1379. Holding above this level will help support the upside bias. A break below this pivot will signal that intraday momentum is trending lower.

Forecast

Based on the current price at 1.1385 and the earlier price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the pivot at 1.1379.

A sustained move over 1.1379 will indicate that buyers are coming in to support the market. This could drive the EUR/USD into the long-term uptrending angle at 1.1398. Overtaking this angle will indicate the buying is getting stronger.

The first resistance angle comes in at 1.1410. This is followed by another downtrending angle at 1.1428. This is the last potential resistance angle before last week’s high at 1.1439 and the 1.1445 main top.

A break under 1.1379 will indicate the presence of sellers. This could lead to quick test of the uptrending angle at 1.1372. If support fails at this angle then look for an acceleration to the downside with the next target angle coming in at 1.1342. This is the last potential support angle before the 1.1312 main bottom.

Due to the light volume, be careful selling weakness and buying strength aggressively.