EUR/USD Mid-Session Technical Analysis for November 29, 2017

The EUR/USD is trading slightly lower on Wednesday. The Forex pair is currently testing a cluster of retracement levels. Since the trend is up, buyers are coming in to defend the zone and slow down the selling pressure.

Traders showed almost no reaction to a preliminary GDP report which came in at 3.3% as expected. Coming up at 1500 GMT is the start of Fed Chair Janet Yellen’s testimony before Congress. She is likely to talk about monetary policy, the direction of interest rates and give her assessment of the muted inflation picture.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is starting to drift lower. A trade through 1.1961 will signal a resumption of the uptrend. The main trend will change to down on a trade through 1.1712.

The major retracement zone is 1.1823 to 1.1886. This zone is controlling the longer-term direction of the EUR/USD.

The short-term range is 1.1712 to 1.1961. Its retracement zone is 1.1837 to 1.1807. This zone is straddling the major 50% level at 1.1823.

The price cluster formed by the series of retracement levels is providing support at this time.

Daily Forecast

Based on the current price at 1.1837 and 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 short-term 50% level at 1.1837 and the short-term 61.8% level at 1.1807.

A sustained move over 1.1837 will indicate the presence of buyers. This could generate enough upside momentum to challenge the steep downtrending angle at 1.1881. This angle stopped the rally earlier in the session.

A sustained move under 1.1807 will signal the presence of sellers. This could trigger an acceleration to the downside with the next target angle coming in at 1.1772.

Trading inside 1.1837 to 1.1897 should lead to sideways price action.