Daily EUR/USD Chart

EUR/USD Mid-Session Analysis for June 24, 2013

Daily Chart

Daily EUR/USD Chart
Daily EUR/USD Chart

On Monday, the EUR/USD entered a major retracement zone, putting it in a position to reverse at any time. Based on the May 17 bottom at 1.2796 to the June 19 top at 1.3415, a retracement zone was created at 1.3106 to 1.3033. Since the main trend is up despite the sharp sell-off, a reversal to the upside shouldn’t come as a surprise.

Besides the retracement zone, an uptrending Gann angle at 1.3058 came close to being tested, instead investors started to buy and shorts began to cover when the market reached 1.3073. This was the first sign that the buying was greater than the selling at current price levels.

The second sign of strength occurred when the market crossed over to the bullish side of the 50% price level at 1.3106. Sustaining a move above this level should give the market a boost on Tuesday. The first target is a downtrending Gann angle at 1.3175. A full-blown retracement could drive the market back to 1.3237 – 1.3279 over the near-term.

Hourly Chart

Hourly EUR/USD Chart
Hourly EUR/USD Chart

The main trend turned up on the hourly chart when the market crossed a swing top at 1.3123. In the process of bottoming, the market made several attempts to move in either direction before settling on the long-side.

Although the market is poised to move higher, it may pullback one more time in an effort to form a secondary higher bottom. Traders should watch for a pullback to 1.3101. A move to this level could attract some fresh buying.

On the upside, the next major target is a retracement zone at 1.3156 to 1.3179. A downtrending angle at 1.3148 could stop the market on the first test, but momentum should eventually take it out.

In summary, the current action on the hourly chart suggests a bottom is forming. Firstly, the main trend turned to up. Secondly, it confirmed the closing price reversal bottom at 1.3058. Now it must survive a test of the bottom. Once the bottom is confirmed then look for a drive to 1.3156 to 1.3179 over the next day or two. 

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.

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