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EUR/USD Mid-Session Technical Analysis for June 22, 2017

By:
James Hyerczyk
Updated: Jun 22, 2017, 13:43 UTC

The EUR/USD is trading slightly lower shortly ahead of the U.S. opening. The dollar has been pressured this week by falling U.S. Treasury yields. Today is

EUR/USD Mid Session

The EUR/USD is trading slightly lower shortly ahead of the U.S. opening. The dollar has been pressured this week by falling U.S. Treasury yields. Today is also the first day of a two-day European Council meeting.

At the meeting, European Union leaders are set to focus on two objectives:  strengthening the EU and protecting its citizens. Therefore key topics set to arise include terrorism, security, globalization and climate change.

EURUSD
Daily EUR/USD

Technical Analysis

The main trend is down according to the daily swing chart. Today’s price action makes 1.1118 a new main bottom. Taking out this bottom will signal a resumption of the downtrend.

The short-term range is 1.1295 to 1.1118. Its retracement zone at 1.1206 to 1.1227 is the primary upside target. Since the main trend is down, we should see sellers on the first test of the retracement zone. They are going to try to set up a secondary lower top.

The main range is 1.0839 to 1.1295. If the downtrend resumes then look for a test of its retracement zone at 1.1067 to 1.1013. This zone is very important to the longer-term structure of the Euro.

Forecast

Based on the current price at 1.1161 and the earlier price action, the direction of the EUR/USD the rest of the day is likely to be determined by trader reaction to the downtrending angle at 1.1175. This angle stopped the rally earlier today.

Overcoming 1.1175 could trigger an acceleration to the upside with the first target the 50% level at 1.1206, followed by the Fib at 1.1227 and the downtrending angle at 1.1235.

The inability to overcome the downtrending angle at 1.1175 will indicate the presence of sellers. This could trigger a break into the long-term uptrending angle at 1.1139. This angle stopped the selling on June 20 at 1.1118.

Sentiment could shift to the downside if the angle at 1.1139 fails as support. This could trigger a fast break into the bottom at 1.1118. This price is also the trigger point for an acceleration to the downside. If sellers come in hard then look for a possible break into the main 50% level at 1.1067.

Basically, we could have a breakout to the upside over 1.1175 and a breakdown under 1.1139.

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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