The Euro is trading slightly higher versus the U.S. Dollar shortly before the U.S. opening on Wednesday as investors prepare for the release of the U.S. Federal Reserve interest rate decision and monetary policy statement. Buyers came in earlier today at 1.17295, slightly above the minor bottom at 1.1727.
At 1050 GMT, the EUR/USD is trading 1.1765, up 0.0021 or +0.17%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher.
The minor trend is up according to the minor swing chart. This is giving momentum its upside bias. A trade through 1.1727 will change the minor trend to down and shift momentum to the downside. A trade through 1.1822 and 1.1841 will indicate the buying is getting stronger.
The main range is 1.1997 to 1.1510. Its retracement zone at 1.1753 to 1.1811 is controlling the near-term direction of the EUR/USD. The Forex pair has straddled this zone all week.
The short-term range is 1.1510 to 1.1841. If the selling pressure continues then its retracement zone at 1.1676 to 1.1636 will become the primary downside target.
Daily Swing Chart Technical Forecast
Based on the early price action and the current price, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the 50% level at 1.1753.
A sustained move over 1.1753 will indicate the presence of buyers. If this generates enough upside momentum then look for buyers to make a run at the Fibonacci level at 1.1811, followed by 1.1822 and 1.1841.
Watch the price action and read the order flow at 1.1841 because this is the trigger point for an acceleration to the upside.
A sustained move under 1.1753 will signal the presence of sellers. This could drive the Forex pair into the minor bottom at 1.1727. This is the trigger point for a potential acceleration to the downside with the next target the retracement zone at 1.1676 to 1.1636. Watch for aggressive counter-trend buyers on a test of this area.