EUR/USD

EUR/USD Mid-Session Technical Analysis for June 12, 2017

The EUR/USD is trading slightly higher, but inside Friday’s range. This chart pattern tends to indicate impending volatility and investor indecision. After last week’s sell-off, we could be looking at positon-squaring and short-covering ahead of the Fed’s interest rate decision and monetary policy statement on Wednesday.

EUR/USD
Daily EUR/USD

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. The main trend will turn down on a trade through 1.1109.

A trade through 1.1285 will signal a resumption of the uptrend with 1.1299 and 1.1327 the next likely targets.

The short-term range is 1.1109 to 1.1285. Its 50% level or pivot is 1.1197. This price is controlling the short-term direction of the market.

The main range is 1.0839 to 1.1285. If the main trend changes to down then look for an eventual break into its retracement zone at 1.1062 to 1.1009.

Forecast

Based on the current price at 1.1218 and the earlier price action, the direction of the EUR/USD on Monday will be determined by trader reaction to the downtrending angle at 1.1225 and the short-term term pivot at 1.1197.

A sustained move over 1.1225 will indicate the presence of buyers. This could trigger an acceleration into the next downtrending angle at 1.1255, followed by another downtrending angle at 1.1270. This is the last potential resistance angle before the 1.1285 main top.

A sustained move under 1.1197 will signal the presence of sellers. The daily chart is open to the downside with the next target angle coming in at 1.1165.

Crossing to the weak side of the downtrending angle at 1.1165 will put the EUR/USD in an extremely bearish position.

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.