EUR/USD Mid-Session Technical Analysis for November 10, 2017

The EUR/USD is trading slightly higher at the mid-session. After a follow-through rally earlier in the session, gains were capped by an overnight spike in U.S. Treasury bond yields that helped boost the greenback.

There’s a bank holiday in the U.S., however, the Forex pair could move higher if there is renewed talk of a possible delay in the U.S. tax bill. At this time, a delay until 2019 is being priced into the market. Essentially, Senate Republicans are writing a different tax bill than House Republicans. Any delay could limit the number of times the Fed plans to raise rates in 2018 and 2019 because of the potential impact on economic growth.

Daily Technical Analysis

The main trend down according to the daily swing chart. A trade through 1.1690 will change the main trend to up. The downtrend will resume if 1.1553 is taken out.

The main range is 1.1312 to 1.2092. The market is currently trading inside its retracement zone at 1.1610 to 1.1702. Trader reaction to this zone will determine the longer-term direction of the EUR/USD.

Daily Technical Forecast

Based on the current price at 1.1643 and the early price action, the direction of the EUR/USD is likely to be determined by trader resistance to the long-term downtrending angle at 1.1642.

A sustained move over 1.1642 will signal the presence of buyers. If this generates enough upside momentum we could see a move into 1.1690 then 1.1702.

A sustained move under 1.1642 will indicate the presence of sellers. This is followed by the major retracement zone at 1.1610. Breaking below this level will be a sign of weakness. If this generates enough downside momentum then we could see prices retreat into 1.1553 and 1.1542.

Volume could be a problem today because of the U.S. bank holiday so be careful buying strength or selling weakness at 1.1642.