The EUR/USD is trading lower on Wednesday, shortly before the U.S. market opening. The Forex pair is trading inside yesterday’s range which suggests investor indecision and impending volatility.
At 1042 GMT, the EUR/USD is trading 1.1714, down 0.0032 or -0.27%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.1792 will signal a resumption of the uptrend. This is followed by the June 14 main top at 1.1851. The trend will change to down on a trade through 1.1527.
The main range is 1.1851 to 1.1509. The EUR/USD is currently testing its retracement zone at 1.1680 to 1.1720.
The short-term range is 1.1527 to 1.1792. Its retracement zone at 1.1660 to 1.1628 is the primary downside target. Since the main trend is up, buyers may show up on a test of this zone.
On the upside is a long-term 50% level at 1.1753. This level is resistance today.
Daily Technical Forecast
Based on the current price at 1.1714, the direction of the EUR/USD the rest of the day is likely to be determined by trader reaction to the main Fibonacci level at 1.1720.
A sustained move under 1.1720 will signal the presence of sellers. This could drive the Forex pair into a 50% level at 1.1680, a 50% level at 1.1660, an uptrending Gann angle at 1.1649 and a Fib level at 1.1628. Buyers could step in on a test of any of these potential support levels. Look for an acceleration to the downside if 1.1628 fails as support.
A sustained move over 1.1720 will indicate the presence of buyers. If this generates enough upside momentum then look for a surge into a resistance cluster at 1.1753 to 1.1756. The latter is the trigger point for an acceleration into 1.1792, followed closely by a downtrending Gann angle at 1.1804.
The angle at 1.1804 is the last potential resistance angle before the 1.1851 main top.
This article was originally posted on FX Empire
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