EUR/USD Mid-Session Technical Analysis for November 27, 2017

The EUR/USD is trading higher shortly after the U.S. opening. The Forex pair is continuing last week’s rally, driven by strong buying which is being fueled by better-than-expected Euro Zone Economic data and concerns over the direction of U.S. interest rates in 2018.

Daily Technical Analysis

The main trend is up according to the daily swing chart. If the upside momentum continues then look for a test of the September 20 top at 1.2033. Taking out this level will signal a resumption of the uptrend with the September 9 top at 1.2092 the next target.

Due to the prolonged move up in terms of price and time, the only chart pattern bullish investors have to be concerned about is the potentially bearish closing price reversal top.

The main range is 1.2092 to 1.1553. Its retracement zone at 1.1886 to 1.1823 is new support. Holding above this zone is helping to generate upside momentum.

Daily Technical Forecast

Based on the current price at 1.1940, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the long-term downtrending angle at 1.1952.

A sustained move over 1.1952 will signal the presence of buyers. This could drive the EUR/USD into the 1.2033 main top. Taking out this level will signal a resumption of the uptrend and could create enough upside momentum to challenge the next downtrending angle at 1.2022. This is the last potential resistance angle before the 1.2092 main top.

The inability to overcome 1.1952 will indicate the presence of sellers. If the selling pressure increases then look for a possible pullback into the Fib level at 1.1886, followed by the uptrending angle at 1.1833.