The Euro is trading lower shortly after the U.S. opening, but inside yesterday’s range. This tends to indicate investor indecision and impending volatility.
At 1131 GMT, the EUR/USD is trading 1.1788, down .0019 or -0.16%.
Daily Swing Chart Technical Analysis
The main trend is down according to the weekly swing chart. A trade through 1.1763 will signal the presence of sellers. This could trigger a break into a main bottom at 1.1736 and a potential support cluster at 1.1717 to 1.1712. We could see a technical bounce on the first test of these levels, but look out to the downside if 1.1712 fails because the next major downside target is a main bottom at 1.1553.
The EUR/USD is not in a position to change the trend to up, but we could see a reversal bottom if the bounce off 1.1736 to 1.1712 is strong enough. The trend will change to up on a move through 1.1998.
The short-term range is 1.1998 to 1.1763. Its retracement zone at 1.1901 to 1.1908 is the primary upside target.
Daily Swing Chart Technical Forecast
Based on the early price action and the inside move, look for an upside bias to develop on a sustained move over 1.1855 and for a downside bias to develop on a sustained move under 1.1763.
Taking out and sustaining a move over 1.1855 will indicate the presence of buyers. This could trigger a fast rally into 1.1901 to 1.1908.
A sustained move under 1.1763 will likely lead to a test of main bottoms at 1.1736, 1.1717 and 1.1712.
The trigger point for an acceleration to the downside is 1.1712. If selling pressure rises on this move then look for the selling to extend into the November 7 main bottom at 1.1553.
This article was originally posted on FX Empire