EUR/USD Mid-Session Technical Analysis for February 19, 2019
The Euro is trading lower on Tuesday as investors shifted their focus from progress in U.S.-China trade talks to an economic slowdown in the Euro Zone. Driving the price action was a drop in Euro Zone bond yields, most notably those of German bunds. Further weighing on prices are expectations ECB policymakers are planning to slash growth and inflation projections next month.
At 12:31 GMT, the EUR/USD is trading 1.1283, down 0.0029 or -0.25%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.1342 will change the main trend to up. A move through 1.1234 will signal a resumption of the downtrend.
The minor trend is also down. A new minor top was formed at 1.1334 earlier today. A trade through this level will change the minor trend to up and shift momentum to the upside.
The short-term range is 1.1342 to 1.1234. Its 50% level or pivot at 1.1288 is controlling today’s price action.
The main range is 1.1514 to 1.1234. If the trend changes to up then its retracement zone at 1.1374 to 1.1407 will become the primary upside target.
Daily Technical Forecast
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the pivot at 1.1288.
Bullish Scenario
Overtaking and sustaining a move over 1.1288 will indicate the return of buyers. If this creates enough upside momentum then look for a drive into the minor top at 1.1334 and the main top at 1.1342. Taking out these level will indicate the buying is getting stronger. This could trigger an acceleration into the main 50% level at 1.1374, followed by the downtrending Gann angle at 1.1384.
Bearish Scenario
A sustained move under 1.1288 will signal the presence of sellers. The first target is a downtrending Gann angle at 1.1254. Crossing to the weak side of this angle will put the EUR/USD in a bearish position with 1.1234 the next likely downside target.
If 1.1234 fails then look for a test of the November 12 bottom at 1.1216.
This article was originally posted on FX Empire
