The EUR/USD followed through to the upside earlier today, but the move failed and prices retreated, leading to a lower market at the mid-session. Helping to boost the Euro was the less-hawkish decision by the Fed to raise interest rates gradually the rest of the year and the lack of a surprise in the elections in the Netherlands.
Technical Analysis
The main trend is up according to the daily swing chart. If the upside momentum continues then the next target will be the February 2 top at 1.0828.
On the downside, the minor bottom is 1.0599 and the main bottom is 1.0524.
The main range is 1.0828 to 1.0493. Its retracement zone is 1.0700 to 1.0660. Trading above this zone is giving the market an upside bias. The retracement zone should be treated like support.
Forecast
Based on the current price at 1.0721 and the earlier price action, the first upside target is the downtrending angle at 1.0753. This angle is also the trigger point for a further acceleration to the upside with the next target angle coming in at 1.0791. This is the last potential support angle before the 1.0828 main top.
If the market fails to overcome the angle at 1.0753 then we could see a pullback into the Fibonacci level at 1.0700, followed closely by the uptrending angle at 1.0694. Additional potential targets are 1.0678 and 1.0660.
The market will open up to the downside under 1.0660 with 1.0624 the next target.
The inability to overcome the angle at 1.0753 seems to have attracted sellers, however, unless the EUR/USD can take out 1.0694, it’s likely to sit in a range today.
