EUR/USD Mid-Session Technical Analysis for February 28, 2018

The EUR/USD is trading at its lowest level since January 8 on Wednesday after hawkish comments about the U.S. economy by Fed Chair Jerome Powell drove up Treasury yields and consequently the U.S. Dollar. Adding further to the weakness was a report of slowing Euro Zone inflation which underlined the ECB’s caution in removing stimulus in the region.


Daily Technical Analysis

The main trend is down according to the daily swing chart. It turned down earlier today when sellers took out the February 9 main bottom at 1.2205. The targets are the major long-term 50% level at 1.2166, the January 18 main bottom at 1.2164 and the short-term Fibonacci level at 1.2160. The daily chart starts to open up to the downside under 1.2160 with the next major target the January 9 main bottom at 1.1915.

Daily EURUSD (Close-Up)

Daily Technical Forecast

Based on the current price at 1.2192 and the earlier the price action, the EUR/USD is likely to be under pressure today as long as it remains under the resistance cluster at 1.2235 to 1.2236. You can’t even think about the long side until buyers recapture 1.2236.

If the downside momentum continues then look for an extension of the break into at least the support cluster at 1.2166, 1.2164 and 1.2160.

Look for a possible acceleration to the downside if 1.2160 fails as support. The next uptrending target angle comes in at 1.2095. This is another trigger point for an acceleration into the next target angle at 1.1986, followed by the 1.1915 main bottom.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.