The Euro is trading higher on Thursday, helped by a weaker U.S. Dollar in a move that was fueled by news that a Chinese delegation will travel to the U.S. in late August for trade talks. Easing fears of contagion over the financial crisis in Turkey also supported prices. Earlier today, investors responded to trade balance data from the Euro Zone. Later, the U.S. will release reports on Building Permits, Housing Starts, Philly Fed Manufacturing and Weekly Unemployment Claims.
At 1201 GMT, the EUR/USD is trading 1.1367, up 0.0022 or +0.19%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum shifted to the upside with the formation of the closing price reversal bottom at 1.1301 and the subsequent confirmation earlier today. This chart pattern could trigger the start of a 2 to 3 week counter-trend trade.
A trade through 1.1301 will negate the closing price reversal bottom and signal a resumption of the downtrend.
The short-term range is 1.1628 to 1.1301. Its retracement zone at 1.1465 to 1.1503 is 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 downtrending Gann angle at 1.1388.
A sustained move over 1.1388 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into 1.1465 to 1.1503 over the next 2 to 3 trading sessions. Since the main trend is down, sellers are likely to show up on a test of this area.
The inability to overcome 1.1388 will signal the presence of sellers. This could lead to a pullback into a minor pivot at 1.1350, followed by 1.1312 and 1.1301.