The Euro is trading lower against the U.S. Dollar after giving back all of its earlier gains. We could be looking at position-squaring ahead of the congressional testimony of U.S. Federal Reserve Chairman Jerome Powell at 1400 GMT.
At 1200 GMT, the EUR/USD is trading 1.1704, down 0.0006 or -0.05%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.1791 will signal a resumption of the uptrend. A move through 1.1613 will negate the closing price reversal bottom and change the main trend to down.
The main range is 1.1851 to 1.1509. Its retracement zone at 1.1680 to 1.1720 is currently being tested. This zone is controlling the longer-term outlook for the EUR/USD.
The short-term range is 1.1509 to 1.1791. Its retracement zone at 1.1650 to 1.1617 is support. This zone essentially stopped the selling at 1.1613 last week.
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 Fibonacci level at 1.1720.
A sustained move under 1.1720 will indicate the presence of sellers. This could drive the Forex pair into the uptrending Gann angle at 1.1689, followed closely by the 50% level at 1.1680.
The 50% level at 1.1680 is a potential trigger point for an acceleration into 1.1650, 1.1617 and 1.1613.
A sustained move over 1.1720 will signal the presence of buyers. This could lead to a quick retest of the downtrending Gann angle at 1.1736 and today’s intraday high at 1.1746.
The trigger point for an acceleration to the upside is 1.1746. Taking out this level with conviction could lead to a test of the main top at 1.1791, followed by the downtrending Gann angle at 1.1794.
Basically, look for an upside bias to develop on a sustained move over 1.1720 and for a downside bias to develop on a sustained move under 1.1680. Trading between these levels will produce a choppy, two-sided trade.