EUR/USD Mid-Session Technical Analysis for June 24, 2019
The Euro is trading higher on Monday and for a change, the rally isn’t being fueled by a weaker U.S. Dollar or expectations of a Federal Reserve rate cut at the end of July, but because a report on business confidence came in as expected. Although it was lower than previously reported, it matched the forecast and that’s good enough for buyers in this current trading environment.
At 10:58 GMT, the EUR/USD is trading 1.1393, up 0.0021 or +0.19%.
Earlier today, the German Ifo Business Climate Index came in at 97.4 in June, lower than that month’s 97.9, but matching the 97.4 consensus estimate. That was the headline number. The internals offered a different assessment. The Ifo Expectations Index came in lower than expected at 94.2 for June.
The Euro may also be trading higher because even if the Euro Zone economy weakens, the European Central Bank doesn’t have much room to lower rates compared to the Fed.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The next upside target is the March 21 main top at 1.1448. Falling below the former top at 1.1348 will be a sign of weakness, but the trend won’t change to down unless 1.1181 is taken out.
The main range is 1.1448 to 1.1107. Its retracement zone at 1.1318 to 1.1278 is support. Holding above this zone will support the upside bias. The major support is the long-term Fibonacci level at 1.1185.
Daily Technical Forecast
Based on the early price action and the intra-day upside momentum, buyers may take a run at the next downtrending Gann angle at 1.1406. This is the last potential resistance angle before the 1.1448 main top.
On the downside, the nearest support is the downtrending Gann angle at 1.1363. If this angle fails as support then look for the selling to extend into the steep uptrending Gann angle at 1.1341. Since the main trend is up, buyers are likely to come in on a test of this angle.
If 1.1341 fails as support, then the selling could extend into the main Fibonacci level at 1.1318.
This article was originally posted on FX Empire
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