EUR/USD Mid-Session Technical Analysis for September 14, 2017

The EUR/USD is trading flat shortly before the release of the U.S. Consumer Inflation data at 1230 GMT. Traders are looking for monthly CPI to rise 0.3% and monthly Core CPI to come in at 0.2%.

Stronger than expected numbers will trigger a rise in U.S. Treasury yields which will help boost the U.S. Dollar. However, it will not mean the Fed will raise rates this year. The only thing a strong number will do is scare the short-sellers out of the U.S. Dollar.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.1823 will change the main trend to down.

The main range is 1.1661 to 1.2092. Its retracement zone at 1.1877 to 1.1826 is the primary downside target. This zone was tested today when the EUR/USD rebounded from its low at 1.1865.

If the short-term range becomes 1.2092 to 1.1865 then its 50% level or pivot will become the primary upside target. This price is 1.1979.

Forecast

Based on the current price at 1.1889 and the earlier price action, the direction of the EUR/USD today will be determined by trader reaction to the 50% level at 1.1877.

A sustained move over 1.1877 will indicate the presence of buyers. This could lead to a rally into a downtrending angle at 1.1932. Overtaking this angle could trigger a huge rally with the next target angle coming in at 1.2012.

A sustained move under 1.1877 will signal the presence of sellers. The first target angle comes in at 1.1861.

If the angle at 1.1861 fails then look for a drop into 1.1826 to 1.1823. Taking out 1.1823 will change the main trend to down and may trigger an acceleration into 1.1761.

Look for a bullish tone over 1.1877 and a bearish tone under this pivot. Watch for an upside acceleration over 1.1932 and a steep break to begin under 1.1826.