The Euro is trading higher against the U.S. Dollar on Monday. The single-currency is showing strength despite increased tensions between the United States and the European Union over tariffs. The Euro is also being underpinned by improving economic data and fresh assurances by Italian politicians that their nation would not leave the single currency.
At 1147 GMT, the EUR/USD is trading 1.1685, up 0.0029 or +0.25%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 1.1509 will signal a resumption of the downtrend. A move through 1.1851 will change the main trend to up.
Momentum shifted to the upside last week with the formation of the closing price reversal bottom at 1.1509 on June 21 and the subsequent follow-through rally.
The minor trend is up. It changed up last week when buyers took out 1.1645. This is another reason for the change in momentum.
The first target is a 50% level at 1.1681. This is followed by a Fibonacci level at 1.1720 and another 50% target at 1.1753.
Daily Technical Forecast
Based on the early price action, the direction of the EUR/USD the rest of the session will be determined by trader reaction to the 50% level at 1.1681 and the steep uptrending Gann angle at 1.1669.
A sustained move over 1.1681 will indicate the presence of buyers. This could drive the EUR/USD into the downtrending Gann angle at 1.1711, followed closely by 1.1720.
Overtaking 1.1720 will indicate the buying is getting stronger with 1.1753 and a downtrending Gann angle at 1.1781 the next target levels.
A sustained move under 1.1669 will signal the presence of sellers. If this move generates enough downside momentum then look for an acceleration to the downside with 1.1589 the next likely target.
The trend is down and the market is testing a key retracement zone at 1.1681 to 1.1753. This may bring in the sellers who will be trying to form a new secondary lower top.