The EUR/USD is trading lower shortly before the U.S. opening. The Forex pair is trading inside Friday’s range which indicates investor indecision and impending volatility. The Euro could strengthen against the U.S. Dollar if the expected tax reform delay continues to remain an issue or if investors feel the differences between the House and Senate proposals leads to a prolonged debate.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.1690 will change the main trend to up. The downtrend resumes on a move through 1.1553.
The main range is 1.1312 to 1.2092. Its retracement zone is 1.1702 to 1.1610. The EUR/USD is currently trading inside this zone. It is essentially controlling the longer-term direction of the market.
Daily Technical Forecast
Based on the current price at 1.1651 and the earlier price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the uptrending angle at 1.1633 and the downtrending angle at 1.1632.
A sustained move over 1.1633 will indicate the presence of buyers. If this generates enough upside momentum, the EUR/USD could challenge last week’s high at 1.1677. This is followed by the main top at 1.1690 and the major 50% level at 1.1702.
A sustained move under 1.1632 will signal the presence of sellers. This could fuel a break into the Fibonacci level at 1.1610. This could trigger a further break into an uptrending angle at 1.1593. This is the last major support angle before the 1.1553 main bottom.
Basically, look for a bullish tone over 1.1633 and for a bearish tone to develop on a move under 1.1632.