EUR/USD Mid-Session Technical Analysis for October 18, 2017

The EUR/USD is trading lower for the fifth consecutive session. Rising U.S. Treasury yields are making the U.S. Dollar a more attractive investment.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top at 1.1879 on October 12.

A trade through 1.1668 will change the main trend to down. A move through 1.1879 will negate the closing price reversal top and signal a resumption of the uptrend.

The short-term range is 1.1668 to 1.1879. Its retracement zone is 1.1773 to 1.1749. This zone could act like a short-term pivot. Look for a downside bias as long as the EUR/USD remains under 1.1749 and for momentum to shift back to up on a move over 1.1773.

The primary downside target is the major retracement zone at 1.1695 to 1.1603.

The main range is 1.2033 to 1.1668. If there is a rapid turnaround then its retracement zone at 1.1850 to 1.1894 becomes the primary upside target.

Daily Forecast

Based on the current price at 1.1749 and the earlier price action, the direction of the EUR/USD will be determined by trader reaction to the price cluster at 1.1748 to 1.1749.

A sustained move under 1.1748 will indicate the selling is getting stronger with the next downside targets layered at 1.1708, 1.1695 and 1.1688. The latter is the last potential support angle before the 1.1668 main bottom.

A sustained move over 1.1749 will signal the return of buyers with the next targets the 50% level at 1.1773 and the downtrending angle at 1.1855.

The angle at 1.1855 is the trigger point for an acceleration to the upside with the next major target a pair of downtrending angles at 1.1833 to 1.1839.

Watch the price action and read the order flow at 1.1748 to 1.1749. Trader reaction to this zone could make or break the EUR/USD today.