EUR/USD Mid-Session Technical Analysis for November 8, 2017
The EUR/USD is trading slightly better at the mid-session on Wednesday. The Forex pair is also posting an inside move which suggests investor indecision and impending volatility.
There are no major U.S. economic reports on Wednesday so investors are likely to continue to react to the divergence between U.S. Federal Reserve and European Central Bank monetary policy and the direction of U.S. Treasury yields and German Bund yields.
Daily Technical Analysis
The main trend is down according to the daily swing chart. It was reaffirmed when sellers took out 1.1573 on Tuesday.
On the upside, the resistance is a major Fibonacci level at 1.1610. On the downside, the next major support is a 50% level at 1.1520.
Daily Technical Forecast
Based on 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 major Fib at 1.1610. This price already acted like resistance earlier.
A sustained move under 1.1610 will indicate the presence of sellers. The first downside target is a short-term 50% level at 1.1582. This is followed by yesterday’s low at 1.1553.
Taking out 1.1553 will signal a resumption of the downtrend with the next major target the long-term uptrending angle at 1.1537, followed by a major 50% level at 1.1520.
Overtaking 1.1610 will indicate the return of buyers. This could trigger a fast short-covering rally into a downtrending angle at 1.1630. Since the main trend is down, sellers are likely to show up on the first test of this angle.
Overcoming 1.1630 could trigger an acceleration to the upside. The daily chart indicates there is plenty of room to rally with the next target angles coming in at 1.1660 and 1.1662.