EUR/USD Mid-Session Technical Analysis for September 28, 2017

The inability to follow-through to the downside early Thursday has ignited a short-covering rally in the EUR/USD. Today’s low at 1.1720 stopped short of yesterday’s low at 1.1716, signaling the presence of a stopper in the market. Someone came in to stop the selling and defend the August 17 main bottom at 1.1661.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1716 will signal a resumption of the downtrend. This could trigger a further break into the next main bottom at 1.1661.

On Friday, the EUR/USD will be in the window of time to post a potentially bullish closing price reversal bottom.

The main range is 1.1661 to 1.2092. Its retracement zone at 1.1826 to 1.1877 is new resistance.

Daily Forecast

Based on the current price at 1.1780 and the earlier price action, the direction of the EUR/USD is likely to be determined by trader reaction to a steep downtrending angle at 1.1793.

Taking out 1.1793 today will indicate the presence of buyers. This could trigger a further rally into a long-term uptrending angle at 1.1811, followed by the Fibonacci target at 1.1826.

The inability to overcome 1.1793 will signal the presence of sellers. The market could then reverse back down with the uptrending angle at 1.1736 the next target. This is followed by 1.1716 and 1.1661.

It there is no momentum in either direction then look for the Euro to sit inside the small triangle formed by Gann angles at 1.1793 and 1.1736.