EUR/USD Mid-Session Technical Analysis for July 4, 2017

The EUR/USD is trading lower shortly before the U.S. opening on Tuesday. It’s a bank holiday in the U.S. so volume is below average. The Forex pair is posting a lower-low for a second day, making 1.1445 a new swing top.

Technical Analysis

The main trend is up according to the daily swing chart. However, the price action is starting to show a shift in momentum. A trade through 1.1445 will signal a resumption of the uptrend.

The main range is 1.1118 to 1.1445. Its retracement zone at 1.1282 to 1.1243 is the primary downside target. Since the main trend is up, we’re looking for a technical bounce on the first test of the zone.

Forecast

Based on the current price at 1.1344, the market is in a position to challenge a pair of angles at 1.1325 and 1.1318. A test of this area could attract some light buying. However, crossing to the weak side of the angle at 1.1318 will put the EUR/USD in a position to accelerate into the 50% level at 1.1282.

On the upside, the Gann angle guiding the market lower is 1.1385. This angle should act like resistance on the first test. Overcoming this angle will signal the return of buyers.

Look for the current downside momentum to drive the EUR/USD into 1.1385. Look for a temporary pause on the first test, but be prepared for further downside pressure to take the Forex pair into at least 1.1282.