EUR/USD Mid-Session Technical Analysis for May 20, 2019
The Euro is trading unchanged shortly after the U.S. opening as investors sort through a mixed performance in global equity markets due to fallout of White House moves against Chinese telecom giant Huawei. The single currency also steadied after five days of declines as elections for the May 23 – May 26 European Parliament approached.
At 11:25 GMT, the EUR/USD is trading 1.1157, up 0.0001 or +0.01%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through the two main tops at 1.1264 and 1.1265 will change the main trend to up. A move through 1.1135 will signal a resumption of the downtrend. This is followed by the April 26 main bottom at 1.1112 and the May 30, 2017 main bottom at 1.1109.
The nearest resistance is the long-term Fibonacci level at 1.1185. The next resistance area is the 50% to 61.8% retracement zone at 1.1218 to 1.1243.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 1.1164 and the uptrending Gann angle at 1.1152.
Bullish Scenario
A counter-trend rally could begin if buyers can take out the downtrending Gann angle at 1.1152 with strong volume. The daily chart shows there is room to the upside with room to rally into the main Fibonacci level at 1.1185.
Bearish Scenario
Taking out 1.1152 and sustaining the move will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the main bottom at 1.1135, followed by the uptrending Gann angle at 1.1132.
Look for a technical bounce on the first test of 1.1135 to 1.1132, however, if it fails then look for the selling to possible extend into 1.1112 to 1.1109.
This article was originally posted on FX Empire
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