Advertisement
Canada markets closed

  • S&P/TSX

    21,807.37
    +98.93 (+0.46%)
     

  • S&P 500

    4,967.23
    -43.89 (-0.88%)
     

  • DOW

    37,986.40
    +211.02 (+0.56%)
     

  • CAD/USD

    0.7275
    +0.0012 (+0.16%)
     

  • CRUDE OIL

    83.24
    +0.51 (+0.62%)
     

  • Bitcoin CAD

    88,499.28
    +1,175.47 (+1.35%)
     

  • CMC Crypto 200

    1,334.09
    +21.46 (+1.64%)
     

  • GOLD FUTURES

    2,406.70
    +8.70 (+0.36%)
     

  • RUSSELL 2000

    1,947.66
    +4.70 (+0.24%)
     

  • 10-Yr Bond

    4.6150
    -0.0320 (-0.69%)
     

  • NASDAQ

    15,282.01
    -319.49 (-2.05%)
     

  • VOLATILITY

    18.71
    +0.71 (+3.94%)
     

  • FTSE

    7,895.85
    +18.80 (+0.24%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • CAD/EUR

    0.6824
    +0.0003 (+0.04%)
     

EUR/USD Mid-Session Technical Analysis for October 16, 2017

James Hyerczyk
Updated

The EUR/USD is trading slightly lower at the mid-session. Today’s lower-low price action has helped make a new main top. This doesn’t mean the trend has changed to down, but that the selling may be strong enough to trigger a further extension into a key retracement zone before attracting the next round of buyers.

EURUSD
Daily EURUSD

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum shifted to the downside with the formation of a closing price reversal top at 1.1879 on October 12.

A trade through 1.1879 will negate the closing price reversal top and signal a resumption of the uptrend.

ADVERTISEMENT

The main range is 1.2033 to 1.1668. Its retracement zone at 1.1850 to 1.1894 stopped the rally last week at 1.1879. This helped attract enough selling to form the closing price reversal top.

The short-term range is 1.1668 to 1.1879. Given the reversal top, the first downside target is its retracement zone at 1.1773 to 1.1749. Since the main trend is up according to the swing chart, buyers could come in on a test of this retracement zone. They are going to try to form a secondary higher bottom.

Daily Forecast

Based on the earlier price action, the direction of the EUR/USD is likely to be determined by trader reaction to the uptrending angle at 1.1788.

A sustained move over 1.1788 will indicate the presence of buyers. This could create enough upside momentum to challenge the resistance cluster at 1.1850 to 1.1853. Counter-trend sellers could come in on the first test of this area. However, if the rally continues then look for a potential acceleration to the upside with targets at 1.1879 and 1.1894.

Basically, look for a bullish tone to develop on a sustained move over 1.1788 and for a bearish tone to develop on a sustained move under this angle.

This article was originally posted on FX Empire

More From FXEMPIRE: