EUR/USD Mid-Session Technical Analysis for September 15, 2017

The EUR/USD opened higher and is continuing the rally shortly before the U.S. opening. Fundamentally, Euro traders weren’t too impressed by yesterday’s U.S. consumer inflation report. Although monthly CPI came in stronger than the forecast, it was probably not enough to turn the Fed from dovish to hawkish.

Later today, investors will get the chance to react to U.S. retail sales data. Minor reports include the Empire State Manufacturing Index, Capacity Utilization, Industrial Production, Consumer Sentiment and Business Inventories.

Traders will also be watching for a response from the United States, Japan or South Korea to the firing of a ballistic missile over Japan by North Korea.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Momentum had been trending lower since September 8, but yesterday’s closing price reversal bottom and subsequent confirmation shifted momentum back to the upside.

The main trend will turn down on a trade through 1.1823.

The main range is 1.1661 to 1.2092. Its retracement zone at 1.1877 to 1.1826 is support. This zone stopped the selling on Thursday at 1.1837.

The short-term range is 1.2092 to 1.1837. Its retracement zone at 1.1965 to 1.1995 is the primary upside target. This zone is important.

Aggressive counter-trend sellers may show up on a test of the short-term retracement zone in an effort to form a secondary lower top. Buyers are going to try to take out the retracement zone in an effort to form a new main bottom at 1.1837.

Forecast

Based on the current price at 1.1940 and the upside momentum, look for a possible drive into the 50% level at 1.1965. Taking out this level could trigger a move into a resistance cluster at 1.1992 to 1.1995. We could see a technical bounce on the first test of this cluster. It’s also the trigger point for an acceleration into the next downtrending angle at 1.2042.

On the downside, support comes in at 1.1877 and 1.1871. If 1.1871 fails as support then look for an acceleration into 1.1837 then 1.1826 and 1.1823.

Today’s price action is all about momentum and how investors react to 1.1965 to 1.1995.