EUR/USD Mid-Session Technical Analysis for January 30, 2018

A rapid reversal to the downside in U.S. Treasury yields helped drive the U.S. Dollar from its highs, leading to a rebound in the Euro on Tuesday.  The EUR/USD reversed earlier losses after U.S. yields pulled back from recent highs. The Euro also strengthened after economic data confirmed the Euro Zone economy is growing at a healthy clip.


Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.2537 will signal a resumption of the uptrend. If the move creates enough upside momentum then look for a challenge of the major Fibonacci level at 1.2597.

Today’s price action made 1.2334 a new minor bottom. Taking out this level will indicate the selling is getting stronger.

The main range is 1.2164 to 1.2537. Its retracement zone is 1.2351 to 1.2307. This zone provided support earlier in the session.

The short-term range is 1.2537 to 1.2334. The EUR/USD is currently testing its 50% level or pivot at 1.2435. Trader reaction to this pivot should determine the direction of the Forex pair the rest of the session.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the session should be determined by trader reaction to 1.2435.

A sustained move over 1.2435 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to extend into a pair of downtrending Gann angles at 1.2477 and 1.2507. The latter is the last potential resistance angle before 1.2537.

A sustained move under 1.2435 will signal the presence of sellers. If this move gains traction then look for a retest of the retracement zone at 1.2351 to 1.2307. This is followed by a long-term uptrending Gann angle at 1.2316.

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.