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EUR/USD Mid-Session Technical Analysis for July 26, 2017

By:
James Hyerczyk
Updated: Jul 26, 2017, 12:15 UTC

The EUR/USD is trading flat as investors await the latest U.S. Federal Reserve interest rate decision and monetary policy statement. The Fed is widely

EUR/USD

The EUR/USD is trading flat as investors await the latest U.S. Federal Reserve interest rate decision and monetary policy statement. The Fed is widely expected to leave interest rates unchanged. Traders will be more interested in any comments it has on economic growth, the labor market, and inflation. Investors also be looking for clues about the timing of the next interest rate hike and when and how the central bank will begin the process of trimming its balance sheet.

It would be a surprise if the Fed comes across as hawkish and a dovish Fed has already been priced into the market so we could have a “buy the rumor, sell the fact” situation on our hands today. This means we could actually see a weaker EUR/USD if the Fed delivers a benign policy message.

EURUSD
Daily EURUSD

Technical Analysis

The main trend is up according to the daily swing chart. Yesterday, the Forex pair slammed into the August 24, 2015 top at 1.1712 before nearly closing lower for the session. This price is the next trigger point for an acceleration to the upside.

Earlier today, the EUR/USD found support at the May 3, 2016 main bottom at 1.1616. This is another potential trigger point for an acceleration to the downside.

The short-term range is 1.1312 to 1.1712. If there is a sell-off then its 50% level or pivot at 1.1512 will become the primary downside target.

Forecast

Based on the current price at 1.1646 and the earlier price action, the key support angles come in at 1.1638 and 1.1612. The former bottom at 1.1616 falls between these angles. The 1.1616 to 1.1612 form a support cluster. Holding this area will indicate the presence of buyers. This may generate enough upside momentum to challenge 1.1712. Look for a surge to the upside if this price is taken out with conviction.

If the angle at 1.1612 is taken out with conviction then look for an acceleration to the downside with the near-term target 1.1512.

About the Author

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.

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