The EUR/USD is trading lower shortly before the U.S. opening. The Forex pair is being pressured by political uncertainty, higher U.S. Treasury yields and worries ahead of Draghi speech later in the week.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.1716 will reaffirm the downtrend with the next target 1.1661.
The new minor top is 1.1832. A trade through this price will change the minor trend to up.
The support is the major retracement zone at 1.1702 to 1.1610.
The main range is 1.1661 to 1.2092. Its retracement zone at 1.1826 to 1.1875 is resistance.
The short-term range is 1.2033 to 1.1716. Its retracement zone at 1.1874 to 1.1912 is the primary upside target.
The two retracement zones combine to form a resistance cluster at 1.1874 to 1.1875. Since the main trend is down, we’re likely to see renewed selling pressure on a test of this price cluster.
Daily Forecast
Based on the current price at 1.1742 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 an uptrending angle at 1.1746.
A sustained move under 1.1746 will indicate the presence of sellers. This could drive the EUR/USD through the main bottom at 1.1716 and to the weak side of a downtrending angle at 1.1713.
The trigger point for an acceleration to the downside is 1.1702. If this price fails then look for a move into the next main bottom at 1.1661.
A sustained move over 1.1746 will signal the presence of buyers. This could drive the market into another uptrending angle at 1.1776.
Overcoming 1.1776 will indicate the buying is getting stronger. This could lead to a test of 1.1826 to 1.1832.