EUR/USD Mid-Session Technical Analysis for September 26, 2017

Relentless selling pressure continues to take out support on the EUR/USD daily chart. On Monday, it posted its worst day of the year so far, earlier today, it hit a one-month low. The catalyst behind the selling pressure was last weekend’s election results in Germany which could weigh on the economy and could make a more unified Euro Zone more difficult.

Daily Technical Analysis

The main trend is down according to the daily swing chart. Earlier today, the selling pressure was strong enough to take out a pair of main bottoms at 1.1837 and 1.1823, turning the trend down. The next target is now the August 17 main bottom at 1.1661.

The main range is 1.1661 to 1.2092. Its retracement zone is 1.1877 to 1.1826. Crossing to the weak side of this zone today has confirmed the downside momentum. This zone is new resistance.

Daily Forecast

Based on the current price at 1.1783 and the earlier price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending angle at 1.1801.

A sustained move under 1.1801 will indicate the presence of sellers. The daily chart indicates the next target angle comes in at 1.1731. This is the last potential support angle before the 1.1661 main bottom.

Overcoming 1.1801 and sustaining the move will signal the presence of buyers. This could trigger a labored rally with potential targets the main Fibonacci level at 1.1826 and the steep downtrending angle at 1.1873.

Crossing 1.1873 should trigger a further rally into the main 50% level at 1.1877. This is the new trigger point for another acceleration to the upside.

Basically, look for the hard sell-off to continue under 1.1801 and for a labored rally to begin on a move over this level.