EUR/USD Mid-Session Technical Analysis for February 14, 2018
The EUR/USD is trading flat shortly before the release of the U.S. consumer inflation and retail sales reports.
Earlier in the session the Euro was supported by strong German economic numbers for the fourth quarter of 2017.
At 1330 GMT, traders will get the opportunity to react to the latest U.S. consumer inflation and retail sales reports. The CPI report is expected to show inflation rose 0.3% in January. Core CPI is expected to show a rise of 0.2%. Retail sales are expected to show an increase of 0.2%.
Traders should expect a volatile reaction to the reports. Stronger numbers, especially the CPI, could put the Fed on a path toward more than expected rate hikes this year. This will be short-term bearish for the EUR/USD.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.2522 will change the main trend to up. A move through 1.2205 will signal a resumption of the downtrend.
The main retracement zone support is 1.2226 to 1.2153. Inside this range is a major long-term 50% level at 1.2166.
The short-term range is 1.2522 to 1.2205. Its retracement zone at 1.2364 to 1.2401 is resistance. This zone stopped the rally at 1.2392 earlier today.
Daily Technical Forecast
Based on the early price action, the direction of the EUR/USD is likely to be determined by trader reaction to the short-term 50% level at 1.2364.
A sustained move under 1.2364 will signal the presence of sellers with Gann angle targets at 1.2342 and 1.2325. We could see a technical bounce on the first test of these levels, but if 1.2325 fails as support then look for an acceleration into the next uptrending Gann angle at 1.2265. This is followed by 1.2226.
A sustained move over 1.2364 will indicate the presence of buyers. The first target is the short-term Fibonacci level at 1.2401.
Taking out 1.2401 will indicate the buying is getting stronger with the next two target angles coming in at 1.2432 and 1.2467. The latter is the last potential resistance angle before the 1.2522 and 1.2537 main tops.
This article was originally posted on FX Empire
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