U.S. Markets closed

EUR/USD Mid-Session Technical Analysis for September 18, 2019

James Hyerczyk

The Euro is trading lower against the U.S. Dollar on Wednesday as traders await the release of the Federal Reserve’s interest rate decision, monetary policy statement and interest rate projections. Central bankers are widely expected to cut interest rates by a quarter of a percentage point. However, traders are more interest in the direction of future rate cuts, namely – will there be rate cuts in October and December, or will the Fed settle on one or none.

At 12:48 GMT, the EUR/USD is trading 1.1054, down 0.0017 or -0.16%.

The EUR/USD could break sharply if the Fed comes across as hawkish especially since the European Central Bank announced an aggressive stimulus package last week. Look for a spike higher if the Fed is dovish, or if it creates more uncertainty. The markets are looking for two more rate cuts so any deviation from this assessment could produce volatile price swings.


Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.1110 will signal a resumption of the uptrend. A move through 1.0990 will change the main trend to down.

The main range is 1.1164 to 1.0926. Its retracement zone at 1.1045 to 1.1073 is controlling the near-term direction of the EUR/USD.

The short-term range is 1.0927 to 1.1110. Its retracement zone at 1.1019 to 1.10997 is potential support.

Daily Technical Forecast

Based on the early price action and the current price at 1.1054, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the 50% level at 1.1045 and the 61.8% level at 1.1073.

Bullish Scenario

Holding 1.1045 will indicate there are enough buyers presence to support the Forex pair. Taking out 1.1073 will indicate the buying is getting stronger with 1.1079 and 1.1087 the next upside targets.

Crossing to the strong side of the steep uptrending Gann angle at 1.1087 will put the EUR/USD in a bullish position with potential targets coming in at 1.1110 and 1.1122. The latter is a potential trigger point for an acceleration to the upside.

Bearish Scenario

The inability to overcome 1.1073 will signal the presence of sellers. The first target is the 50% level at 1.1045.

Taking out 1.1045 could trigger an acceleration to the downside with the next targets lined up at 1.1019, 1.1007 and 1.1097.

The trigger point for an acceleration to the downside is 1.0990.

This article was originally posted on FX Empire