The Euro is trading lower against the U.S. Dollar shortly after the U.S. opening and as sellers came in as the currency approached a short-term retracement area.
At 1156 GMT, the EUR/USD is trading 1.1585, down 0.0014 or -0.12%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.1530 will signal a resumption of the downtrend. The main trend will change to up on a move through 1.1747.
The main range is 1.1747 to 1.1530. Its retracement zone at 1.1639 to 1.1664 is the primary upside target. Since the main trend is down, sellers are likely to show up on a test of this zone. They will be trying to form a potentially bearish secondary lower top.
The major resistance zone is 1.1680 to 1.1720.
Daily Technical Forecast
Today’s earlier rally fell short of the minimum 50% level objective at 1.1639. Sellers came in on a test of a downtrending Gann angle at 1.1627 to stop the rally. Given the reaction following the test of this angle, it is likely to control the direction of the market all session.
A sustained move under 1.1627 will indicate the presence of sellers. If the downside momentum continues then look for a move into the next uptrending Gann angle at 1.1570.
We could see a technical bounce on the first test of 1.1570. These will be aggressive counter-trend buyers, trying to form a potentially bullish secondary higher bottom.
If 1.1570 fails as support then look for the selling to continue into the next uptrending Gann angle at 1.1550. This is the last potential support angle before the 1.1530 main bottom. If this bottom fails then look for the selling to extend into the June 28 bottom at 1.1527 and the June 21 bottom at 1.1509.
Overtaking and sustaining a move over 1.1627 will signal the return of buyers. If this move creates enough upside momentum then look for a potential rally into 1.1639.
Taking out 1.1639 will indicate the buying is getting stronger. This could spike the EUR/USD into a series of potential resistance at 1.1664, 1.1680 and 1.1687.