EUR/USD Mid-Session Technical Analysis for September 18, 2017

The EUR/USD is trading nearly flat shortly before the U.S. opening. The market is also trading inside Friday’s range which indicates investor indecision and impending volatility. This is understandable since it is Fed meeting week and the major players may decide to sit on their hands until Wednesday’s monetary policy decision and economic projections.

The U.S. Federal Reserve is widely expected to leave its benchmark interest rate unchanged at<1.25%. However, investors are probably more interested in the details of the central bank’s plan to reduce its balance sheet.

Daily 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. A move through 1.2092 will signal a resumption of the uptrend.

Upside momentum received a boost late last week with the formation of a potentially bullish closing price reversal bottom at 1.1837.

The main range is 1.1661 to 1.2092. Its retracement zone at 1.1877 to 1.1826 is new support. Last week’s low at 1.1837 fell inside this zone.

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 stopped the rally on Friday at 1.1986.

Aggressive counter-trend sellers are going to try to stop a rally into 1.1965 to 1.1995 in an effort to form a potentially bearish secondary lower top. Bullish trend traders are going to try to take out the zone in an effort to form a new main bottom at 1.1837.

Daily Forecast

Based on the current price at 1.1947, the EUR/USD can move in either direction.

If momentum takes it higher then look for a move into a short-term 50% level at 1.1965, a downtrending angle at 1.1972, followed by a short-term Fibonacci level at 1.1995. Taking out 1.1995 will indicate the buying is getting stronger.

If momentum shifts to the downside then look for a move into the support cluster at 1.1881 to 1.1877. Since the trend is up, watch for a technical bounce. If it fails as support then look for an acceleration into 1.1826.