EUR/USD Mid-Session Technical Analysis for November 7, 2017

The EUR/USD is trading lower at the mid-session. The Euro is under pressure as investors increased bets that the central bank policies of the U.S. Federal Reserve and European Central Bank will continue to diverge.

Traders expect the U.S. central bank to raise interest rates in December followed by probably two more hikes in 2018, while analysts don’t expect another rise in Euro Zone interest rates until 2019 at the earliest.

The EUR/USD is under pressure despite strong economic data that showed investor sentiment towards Germany climbed to a record high.

The trade action also suggests that investors are aggressively pairing long Euro positions. Falling German Bund yields are also pressuring the single-currency.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers took out the previous main bottom at 1.1573. The new swing top is 1.1690.

On the upside, a retracement zone at 1.1610 to 1.1702 is providing resistance.

On the downside, the target is zone is 1.1520 to 1.1359. This zone is 50% to 61.8% of the major range formed by 1.0839 to 1.2200.

Daily Technical Forecast

Based on the current price at 1.1560 and the earlier price action, the nearest Gann angle target comes in at 1.1535. This is followed closely by the major 50% level at 1.1520.

The 50% level at 1.1520 is the trigger point for an acceleration to the downside with the next target angle coming in at 1.1421.

On the upside, the nearest resistance angle drops in at 1.1610. This angle forms a resistance cluster with a Fibonacci level at the same price. This cluster provided resistance earlier in the session.

If the downside momentum continues then look for a minimum test of 1.1535 to 1.1520. If 1.1520 fails then look out to the downside.