EUR/USD Mid-Session Technical Analysis for December 28, 2017
The EUR/USD is trading higher shortly after the U.S. opening. There is no particular reason for the rally, other than a weaker U.S. Dollar. Some traders are blaming that on falling U.S. Treasury yields. It seems the Euro was driven lower in anticipation of the Fed’s rate hike and the passage of the U.S. tax reform bill. Now that those two events have taken place, the Euro is free to rally.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out 1.1940 earlier today. The next target is the November 27 main top at 1.1961. This is followed by additional tops at 1.2033 and 1.2092.
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The main range is 1.2092 to 1.1553. The market is currently trading on the strong side of its retracement zone at 1.1886 to 1.1823. These two levels are new support.
Daily Technical Forecast
Based on the current price at 1.1937 (1240 GMT), the direction of the EUR/USD the rest of the session will be determined by trader reaction to an uptrending Gann angle at 1.1913.
A sustained move over 1.1913 will indicate the presence of buyers. If the upside momentum continues we could see a test of the top at 1.1961, followed by a long-term downtrending Gann angle at 1.1995. This is the last potential resistance angle before the main tops at 1.2033 and 1.2092.
A break under 1.1913 will be the first sign of weakness. A trade under the long-term downtrending Gann angle at 1.1897 will signal that the selling is getting stronger. A move under 1.1886 could trigger an acceleration to the downside with 1.1823 the next likely target.