EUR/USD Mid-Session Technical Analysis for November 21, 2017

The EUR/USD is trading lower during the European session, pressured by German political deadlock. Volume is light for a second day due to the U.S. holiday-shortened week. This makes the Forex pair vulnerable to violent swings.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A new main top was formed earlier today at 1.1860. A trade through this level will change the main trend to up.

On the upside, the major resistance is a retracement zone at 1.1823 to 1.1886. This zone stopped the rally last week at 1.1860.

The main range is 1.1553 to 1.1860. Its retracement zone at 1.1707 to 1.1670 is the primary downside target.

The major support is the retracement zone at 1.1702 to 1.1610.

Combining the two retracement zones creates a support cluster at 1.1707 to 1.1702.

Since the main trend is up, buyers are likely to come in to defend the trend on a test of the support cluster.

Daily Technical Forecast

Based on the current price at 1.1722 and the current downside momentum, we’re likely to hit 1.1707 to 1.1702 before the U.S. opening.

Trader reaction to 1.1707 to 1.1702 should determine the direction of the EUR/USD the rest of the session.

A sustained move over 1.1707 will indicate the return of buyers. If this generates enough upside momentum then we could see a test of an uptrending Gann angle at 1.1753 and a downtrending Gann angle at 1.1780.

A sustained move under 1.1702 will signal that the selling is getting stronger. This could trigger an acceleration into the Fibonacci level at 1.1670, followed by an uptrending angle at 1.1653.

Look for a possible shift in intraday momentum to the upside if the EUR/USD can hold above 1.1707. Watch for the selling to get stronger if 1.1702 fails to hold.