EUR/USD Mid-Session Technical Analysis for July 24, 2017

The EUR/USD struggled after barely taking out last week high before turning lower for the session. There has been no change in the fundamentals or news so the move is likely related to price action. It looks as if the market ran out of buyers shortly before its two-year top.

Technical Analysis

The main trend is up according to the daily swing chart. However, today’s session began with the EUR/USD in the window of time for a potentially bearish closing price reversal top. We’ve had the prolonged move up in terms of price and time and the higher-high earlier today. Now all the Euro has to do is close lower. The chart pattern could signal the start of a 2 to 3 day correction.

On the upside, the next major target is the August 24, 2015 main top at 1.1712. The nearest downside target is the last main top at 1.1616. This could become support.

The main range is 1.1312 to 1.1684. If there is a correction then its 50% level at 1.1498 will become its primary downside target.

Forecast

Based on the current price at 1.1646 and the earlier price action, the direction of the EUR/USD the rest of the session will be determined by trader reaction to 1.1662.

A sustained move over 1.1662 will indicate the presence of buyers. This could generate the upside momentum needed to overcome 1.1684 and 1.1712.

A sustained move under 1.1662 will signal the presence of sellers. This could initially drive the Forex pair back to 1.1616 and a pair of uptrending angles at 1.1598 and 1.1572.

The Gann angle at 1.1572 is the trigger point for an acceleration to the downside with 1.1498 the next major target.