EUR/USD Mid-Session Technical Analysis for October 4, 2017

The EUR/USD is trading higher on Wednesday shortly before the U.S. opening. On Tuesday, the Forex pair formed a potentially bullish closing price reversal bottom. This chart pattern was confirmed earlier today when buyers took out 1.1773.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside yesterday with the formation of the closing price reversal bottom.

A trade through 1.1832 will change the main trend to up. A move through 1.1695 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The major retracement zone is 1.1702 to 1.1610. This zone provided support on Tuesday when the EUR/USD entered this zone, posting its low at 1.1695.

The intermediate range is 1.2033 to 1.1695. If the trend changes to up then its retracement zone at 1.1864 to 1.1904 will become the primary upside target.

The short-term range is 1.1832 to 1.1695. Its retracement zone at 1.1764 to 1.1780 is currently being tested. This zone is controlling the direction of the market today.

Daily Forecast

Based on the current price at 1.1771 and the earlier price action, look for an upside bias the rest of the session on a sustained  move over 1.1780 and for a downside bias to develop the rest of the session on a sustained move under 1.1764.

A sustained move over 1.1780 will indicate the presence of buyers. This could trigger an acceleration to the upside with the first target a resistance cluster formed by the main top at 1.1832 and the downtrending angle at 1.1833.

Overtaking 1.1833 could trigger an acceleration into the intermediate 50% level at 1.1864.

A sustained move under 1.1764 will signal the presence of sellers. The daily chart is open to the downside with the next two targets 1.1702 and 1.1695.