EUR/USD Mid-Session Technical Analysis for November 2, 2017

The EUR/USD is trading higher and in a position to cross to the strong side of its four day range. The move won’t change the main trend to up, but it will alleviate some of the downside pressure that has been building since last week’s European Central Bank monetary policy decision.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1573 will signal a resumption of the downtrend.

On the downside, the nearest support is the major Fibonacci level at 1.1610.

The nearest upside target is a resistance cluster formed by a pair of 50% levels at 1.1702 and 1.1705. A long-term downtrending angle also comes in at 1.1702, making it a valid upside target also.

Daily Forecast

Based on the earlier price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending angle at 1.1653.

Crossing to the strong side of the angle at 1.1653 could trigger a rally into the resistance cluster at 1.1702 to 1.1705. Since the main trend is down, look for sellers to show up on the initial test of the resistance cluster.

Overtaking 1.1705 could trigger a breakout to the upside with a Fibonacci level at 1.1736 the next target.

A sustained move under 1.1653 will signal the presence of sellers. If this attracts enough selling pressure then look for a possible retest of the uptrending angle at 1.1613. This angle provided support on Wednesday and earlier today.

Basically, look for the upside bias to extend on a move over 1.1653. Look for a possible reemergence of sellers on a trade under this angle.