EUR/USD Mid-Session Technical Analysis for August 8, 2017
The EUR/USD is inching higher shortly before the U.S. opening. The early trade suggests we’re going to have a day similar to Monday’s lackluster performance so be careful buying strength or selling weakness, you may get trapped by the low volume. Make sure you have volume on your side and time and sales are spinning since most of the major players are likely to remain on the sidelines until Friday.
Technical Analysis
The main trend is up according to the daily swing chart. However, the upside has slowed a little.
A trade through 1.1910 will signal a resumption of the uptrend. A trade through 1.1727 will not change the trend, but it will indicate the selling pressure is getting stronger and that momentum is shifting to the downside.
The short-term range is 1.1910 to 1.1727. Its retracement zone at 1.1819 to 1.1840 is acting like resistance.
The main range is 1.1312 to 1.1910. If there is a sharp sell-off then its retracement zone at 1.1611 to 1.1540 will become the primary downside target.
Forecast
Based on the current price at 1.1810 and the earlier price action, the direction of the market is likely to be determined by trader reaction to the 50% level at 1.1819 and the uptrending angle at 1.1792.
An uptrending angle at 1.1818 and a 50% level at 1.1819 are combining to form a resistance cluster. Overtaking this area will signal the presence of buyers. This could lead to a fast rally into the short-term Fibonacci level at 1.1840. This is the trigger point for a possible acceleration into last week’s high at 1.1910.
Crossing to the weak side of the uptrending angle at 1.1792 will indicate the presence of sellers. The daily chart starts to open up to the downside under this angle with 1.1727 the next key target.
Taking out last week’s low at 1.1727 could trigger an acceleration to the downside. The daily chart is wide open under this level with 1.1611 the minimum downside target.
This article was originally posted on FX Empire
