EUR/USD Mid-Session Technical Analysis for January 15, 2019
The Euro is trading lower against the U.S. Dollar on Tuesday on concerns over a slowing Euro Zone economy. Of particular concern is the German economy, which is struggling with a cooling of the global economy and trade disputes driven by U.S. President Donald Trump’s policies. There are also growing doubts about whether the European Central Bank will raise interest rates at all in 2019.
At 1338 GMT, the EUR/USD is trading 1.1416, down 0.0067 or -0.58%.
Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on January 10. A trade through 1.1570 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through 1.1309.
On the upside, the major retracement zone is 1.1516 to 1.1587. This zone stopped the rally last week at 1.1570.
The main range is 1.1309 to 1.1570. The EUR/USD is currently testing its retracement zone at 1.1440 to 1.1409. Trader reaction to this zone will determine the near-term direction of the Forex pair.
Daily 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 1.1450 and the Fibonacci level at 1.1409.
Bullish Scenario
Holding 1.1409 will indicate the presence of buyers, however, the trigger point for a potential acceleration to the upside is the steep downtrending Gann angle at 1.1450.
Bearish Scenario
A sustained move under the 50% level at 1.1400 will signal the presence of sellers. However, the trigger point for an acceleration to the downside is the Fibonacci level at 1.1409. If this fails then look for the selling to extend into the uptrending Gann angle at 1.1389.
Since the trend is up, look for buyers on the first test of 1.1389. If it fails then the selling could extend towards the next uptrending Gann angle at 1.1349.
This article was originally posted on FX Empire
