EUR/USD Mid-Session Technical Analysis for September 5, 2017

The EUR/USD is trading flat on Tuesday. Unless there is unexpected news, I don’t anticipate much movement ahead of Thursday’s European Central Bank interest rate decision and ECB President Mario Draghi’s press conference. There is still some uncertainty over whether Draghi will announce the central bank is considering reducing stimulus.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.2070 will signal a resumption of the uptrend. A move through 1.1822 will change the minor trend to down.

The short-term range is 1.2070 to 1.1822. Its retracement zone and primary upside target is 1.1946 to 1.1975.

The intermediate range is 1.1661 to 1.2070. Its retracement zone at 1.1866 to 1.1817 is support. Holding above this zone is helping to give the EUR/USD an upside bias.

Forecast

Based on the current price at 1.1879 and the earlier price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the support cluster at 1.1870 to 1.1866.

A sustained move over 1.1870 will indicate the presence of buyers. This could trigger a limited rally into 1.1921 and 1.1946.

A sustained move under 1.1866 will signal the presence of sellers. The daily chart is wide open to the downside with potential targets at 1.1822, 1.1817 and an uptrending angle at 1.1791.