EUR/USD Mid-Session Technical Analysis for June 10, 2019
The Euro is trading lower against the U.S. Dollar on Monday shortly after the U.S. opening as long traders paired positions after last week’s solid gains. The currency is trading side Friday’s range when indicates trader indecision and impending volatility. Traders could also be preparing to make the transition from bullish to neutral.
At 12:44 GMT, the EUR/USD is trading 1.1308, down 0.0024 or -0.22%.
The catalysts behind the weakness are a U.S.-Mexico migration agreement, which boosted the dollar, and a report from CNBC that quoted sources as saying European Central Bank policymakers were open to cutting the ECB’s policy rate should economic growth worsen.
On Sunday, two sources familiar with the ECB’s policy discussions said a cut was firmly in play if the bloc’s economy was to stagnate again after expanding by 0.4% in the first quarter of the year.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, the EUR/USD is trading inside Friday’s range. A trade through 1.1348 will signal a resumption of the uptrend. The main trend will change to down on move through 1.1204.
The main retracement zone at 1.1278 to 1.1318 is controlling the near-term direction of the EUR/USD. The Forex pair is currently trading inside this zone.
On the downside, the major support is the Fibonacci level at 1.1185.
Daily Technical Forecast
Based on the early sideways trade, the direction of the EUR/USD is likely to be determined by trader reaction to the Fibonacci level at 1.1318 and the downtrending Gann angle at 1.1304. The Forex pair is currently trading between these two levels.
Bullish Scenarios
A sustained move over 1.1318 will indicate the presence of buyers. If this generates enough upside momentum then look for the rally to continue into an uptrending Gann angle at 1.1347 and last week’s high at 1.1348. Taking out this level could trigger a surge into a longer-term downtrending Gann angle at 1.1377.
Bearish Scenario
A sustained move under 1.1304 will signal the presence of sellers. This could trigger a break into the 50% level at 1.1278. We could see a technical bounce on the first test of this level. If it fails then we could see a near-term break into the next uptrending Gann angle, currently at 1.1227.
This article was originally posted on FX Empire
