EUR/USD Mid-Session Technical Analysis for September 6, 2017

The EUR/USD is trading slightly higher shortly before the U.S. opening. Volume is below average as investors prepare for Thursday’s European Central Bank interest rate decision and ECB President Mario Draghi’s press conference. Traders want to know if the central bank is ready to begin 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 is 1.1946 to 1.1975. This zone is acting like resistance. The lower or 50% level of the range stopped the rally earlier today at 1.1949.

The main range is 1.1661 to 1.2070. Its retracement zone is 1.1866 to 1.1817. This zone is support.

Forecast

Based on the current price at 1.1921 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to the resistance cluster at 1.1941, 1.1946 and 1.1950.

A sustained move under 1.1941 will indicate the presence of sellers. The daily chart is open to the downside so if the selling volume increases, we could see a move into the major 50% level at 1.1866.

A sustained move over 1.1950 will signal the presence of buyers. Taking out this level could fuel a move into the short-term Fibonacci level at 1.1975, followed by a downtrending angle at 1.2010.