EUR/USD Mid-Session Technical Analysis for June 29, 2017

The EUR/USD is trading higher today. The Forex pair followed through to the upside earlier in the session, reaffirming the uptrend.

Technical Analysis

The main trend is up according to the daily swing chart. Earlier today, the EUR/USD took out the June 24, 2016 main top before the rally stalled at 1.1434. Trading back below the former top suggests that the breakout move was triggered by buy stops rather than aggressive buying.

Falling back below the former top could be the first indication of sellers. The EUR/USD is also in the window of time for a potentially bearish closing price reversal top. The next sign of weakness will be falling below yesterday’s close at 1.1376 then below the August 18, 2016 main top at 1.1366.

The current range is 1.1118 to 1.1434. Its retracement zone is 1.1276 to 1.1239. If there is a breakdown from current highs then this zone will become the primary downside target.

Forecast

Based on the current price at 1.1411 and the earlier price action, look for the bullish tone to be reestablished on a sustained move above the intraday high at 1.1434. Look for a downside bias to develop on a sustained move under the uptrending Gann angle at 1.1398.

A sustained move over 1.1434 will put the EUR/USD in a bullish position. The next major top doesn’t come in until 1.1616.

A sustained move under 1.1398 will signal the presence of sellers. The first target is 1.1366. Taking out this level with conviction could trigger the start of an acceleration to the downside with the next major downside target coming in at 1.1276, 1.1258 and 1.1239.

Essentially, we’re looking for a possible breakout over 1.1434 or a possible breakdown under 1.1366. Otherwise, rangebound between these two levels.