The Euro is trading slightly better on Wednesday. The currency is being supported by a weaker U.S. Dollar. The greenback is being pressured by the shedding of safe-haven positions in reaction to the optimism over U.S.-China trade relations and the news that the U.S. may have averted another government shutdown.
At 12:03 GMT, the EUR/USD is trading 1.1326, down 0.0001 or -0.01%.
Daily Technical Analysis
The main trend is down according to the daily swing chart, however, momentum shifted to the upside with the formation of a closing price reversal bottom on Tuesday and its confirmation earlier today.
The main trend will actually change to up on a trade through 1.1514. A move through 1.1258 will negate the closing price reversal bottom and signal a resumption of the downtrend.
The main range is 1.1514 to 1.1258. If the upside momentum continues then its retracement zone at 1.1386 to 1.1416 will become the primary upside target. Since the main trend is down, sellers are likely to show up on a test of this zone.
The new short-term range is 1.1258 to 1.1342. Its retracement zone at 1.1300 to 1.1290 is the primary downside target. This zone could become a new secondary higher bottom if aggressive counter-trend buyers show up.
Daily Technical Forecast
Based on the early price action, the direction of the EUR/USD will be determined by trader reaction to the downtrending Gann angle at 1.1334. This angle was tested earlier in the session.
A sustained move over 1.1334 will indicate the presence of buyers. Taking out 1.1342 will indicate the buying is getting stronger. If this generates enough upside momentum then look for a move over the near-term into the 50% level at 1.1386.
A sustained move under 1.1334 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into the support cluster at 1.1300 to 1.1298. Aggressive counter-trend buyers could show up on a test of this area.
If 1.1298 fails then look for a move into the Fibonacci level at 1.1290, followed by another Gann angle at 1.1278.
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