EUR/USD Mid-Session Technical Analysis for November 6, 2017

The EUR/USD is trading lower at the mid-session. The Forex pair is following through to the downside after Friday’s steep sell-off was fueled by the U.S. Non-Farm Payrolls report. Although the headline number and average hourly earnings came in below expectations, the figures and the previous month’s revisions were enough to keep the Fed on track to raise rates in December.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The earlier price action has made 1.1690 a new main top. A trade through this level will change the main trend to up. A move through 1.1573 will signal a resumption of the downtrend.

The EUR/USD is also trading on the weak side of a major Fibonacci level at 1.1610. This level is now resistance.

Daily Technical Forecast

Based on the current price at 1.1590 and the earlier price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the Fibonacci level at 1.1610.

A sustained move under 1.1610 will indicate the presence of sellers. This could trigger an acceleration into the main bottom at 1.1573. This is also the trigger point for a steep break into the next major long-term uptrending angle at 1.1532.

Overcoming 1.1610 and sustaining the move will signal the return of buyers. If this creates enough upside momentum, the EUR/USD could rally into the next steep downtrending angle at 1.1650.

Watch the price action and read the order flow at 1.1610 all session. Trader reaction to this level will tell us if the sellers are increasing pressure or if the buyers have returned.