EUR/USD Mid-Session Technical Analysis for March 30, 2017

The EUR/USD is trading lower at the mid-session. Sellers are hitting the Euro in response to reports that European Central Bank policymakers were wary of changing their policy message. Earlier in the month, the EUR/USD was boosted by a report that the ECB had discussed the possibility of raising interest rates before the end of its quantitative easing program.

In the U.S. markets today, investors will get the opportunity to react to the third release of U.S. Q4 GDP and weekly jobless claims figures. Both will be released at 1230 GMT.

Several Fed speakers are on tap today. San Francisco Fed President John Williams is slated to speak at 1500 GMT, while Dallas Fed President Robert Kaplan will speak at 1900 GMT. New York Fed President William Dudley is due to speak at 2030 GMT.

Dudley is probably going to be the most interesting because he is a permanent voter on the Federal Open Market Committee. He is expected to talk about current financial conditions and monetary policy.

Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Wednesday when the EUR/USD took out 1.0759. The next target bottom is 1.0719.

On the upside, the major retracement zone is 1.0819 to 1.0932. This zone stopped the rally earlier in the week at 1.0906.

The main range is 1.0524 to 1.0906. Its retracement zone is 1.0715 to 1.0670.

Another longer-term retracement zone comes in at 1.0700 to 1.0651.

The best target zone today is 1.0715 to 1.0700. Watch for a technical bounce on a test of this area.

Forecast

Based on the current price at 1.0743, look for the downtrend to continue as long as the EUR/USD stays below the downtrending angle at 1.0786.

If the selling continues then look for a labored break because of potential support levels at 1.0715, 1.0700, 1.0674 and 1.0670.