EUR/USD Mid-Session Technical Analysis for September 25, 2018

The Euro is trading higher shortly before the U.S. opening. The currency is recovering a little following yesterday’s closing price reversal top. During the early session, the chart pattern was not confirmed with prices remaining inside yesterday’s range. This tends to indicate investor indecision and impending volatility.

The single-currency rallied on Monday after European Central Bank President Mario Draghi expressed confidence in Euro Zone inflation and wages growth. However, prices broke sharply from the high of the session after Draghi reiterated that interest rates would remain at suppressed levels until after next summer.

At 1124 GMT, the EUR/USD is trading 1.1777, up 0.0030 or +0.28%.


Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum may have shifted to the downside with the formation of the closing price reversal top at 1.1816. A trade through 1.1723 will confirm the chart pattern and signal a shift in momentum to down.

A trade through 1.1816 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is up. A trade through 1.1650 will change the minor trend to down. This will also signal a shift in momentum to the downside.

The short-term range is 1.1526 to 1.1816. If the reversal top is confirmed then its retracement zone at 1.1671 to 1.1637 will become the primary downside target.

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Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD is likely to be determined by trader reaction to the uptrending Gann angle at 1.1746.

A sustained move over 1.1746 will indicate the presence of buyers. The first upside target is a minor pivot at 1.1770. Aggressive countertrend sellers could come in on a test of this level. Taking it out is likely to lead to a rally back to 1.1816. Overcoming this price will set up a possible move into the June 14 top at 1.1851.

A sustained move under 1.1746 will signal the presence of sellers. The daily chart is wide open under this angle so watch for a potential acceleration to the downside if this price is taken out with conviction. The first downside target is 1.1671, followed by a support cluster at 1.1637 to 1.1636.

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.