The EUR/USD is trading lower on Thursday for a fifth consecutive session. The Forex pair is rapidly approaching a series of retracement levels and another main bottom.
Daily Technical Analysis
The main trend is down according to the daily swing chart. If the downside momentum continues, we could see a test of the next main bottom at 1.2164. Taking out this bottom will reaffirm the downtrend.
The short-term range is 1.2164 to 1.2537. Its 50% level at 1.2351 is resistance.
The main range is 1.1915 to 1.2537. Its retracement zone is 1.2226 to 1.2153. The market tested the upper or 50% level at 1.2226 earlier today.
The major support is the long-term 50% level at 1.2166.
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 1.2226.
A sustained move over 1.2226 will signal the return of buyers. If this move generates enough upside momentum then look for a rally into the steep downtrending Gann angle at 1.2322. This angle has been guiding the EUR/USD lower at a rate of .004 per day since February 1. Overcoming this angle could trigger a move into 1.2351.
A sustained move under 1.2226 will indicate the presence of sellers. This could trigger an acceleration into a support cluster at 1.2166 to 1.2164, followed closely by 1.2153 and an uptrending Gann angle at 1.2135.