The EUR/USD is trading lower at the mid-session. Earlier in the session, the Forex pair surged to 1.0782, its highest level since February 6, but sellers came in as the market approached the February 2 main top at 1.0828.
Technical Analysis
The main trend is up according to the daily swing chart. The next upside target is 1.0828.
The EUR/USD is also trading on the strong side of a retracement zone at 1.0700 to 10660, giving it an early upside bias. These levels are new support today.
Today’s price action also suggests the EUR/USD is vulnerable to the formation of a potentially bearish closing price reversal top.
Forecast
Based on the current price at 1.0739 and the earlier price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the downtrending angle at 1.0751.
A sustained move over 1.0751 will signal the presence of buyers. This could create enough upside momentum to challenge the next downtrending angle at 1.0789. This is the last potential resistance angle before the 1.0828 main top.
A failure to overcome 1.0751 will indicate the presence of sellers. This could drive the market into the next uptrending angle at 1.0714. This is followed by 1.0700.
The Fibonacci level at 1.0700 must hold or the EUR/USD could accelerate to the downside with 1.0660 the next key target.
The early read for traders today is the downtrending angle at 1.0751, followed an uptrending angle at 1.0714 and finally 1.0700.
