EUR/USD Mid-Session Technical Analysis for October 24, 2017

The EUR/USD is trading higher at the mid-session but inside yesterday’s range. This indicates investor indecision and impending volatility. This can be understood because most major investors remain on the sidelines ahead of Thursday’s key European Central Bank monetary policy decision.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Monday when sellers took out the previous main bottom at 1.1729. There has been no follow-through to the downside which suggests the move may have been fueled by sell stops rather than new short-selling.

The price action is also being manipulated by a series of retracement levels.

If the selling pressure persists then the next downside target is the major 50% level at 1.1695. This is followed by another main bottom at 1.1668.

The main range is 1.1668 to 1.1879. Its retracement zone at 1.1773 to 1.1749 is currently being tested. This zone is controlling the direction of the market today.

The short-term range is 1.1858 to 1.1724. Its 50% level or pivot is 1.1791. This zone is also important to the structure of the market.

Daily Forecast

Based on the current price at 1.1761 and the earlier price action, the direction of the EUR/USD is likely to be determined by trader reaction to 1.1773 and 1.1749.

A sustained move over 1.1773 will indicate the presence of buyers. This could trigger a move into the short-term 50% level at 1.1791. Overtaking this level will indicate the buying is getting stronger. This is also a trigger point for an acceleration to the upside with the next major targets 1.1850 and 1.1858.

The inability to overcome 1.1773 will signal the presence of sellers. Taking out 1.1749 will signal the selling is getting stronger. This could trigger a break into 1.1724 then eventually 1.1695.