EUR/USD Mid-Session Technical Analysis for October 22, 2019
The Euro is edging lower against the U.S. Dollar on Tuesday after posting a potentially bearish closing price reversal top the previous session. The chart pattern was formed after the single-currency hit a two-month high on Monday.
The catalysts behind the weakness are hopes of a U.S.-China trade deal over the near-term, which is helping to boost the U.S. Dollar, and general uncertainty over the Brexit vote in the British parliament.
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At 10:06 GMT, the EUR/USD is trading 1.1142, down 0.0007 or -0.07%.
Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum shifted to the downside with the formation of the closing price reversal top at 1.1179 on Monday and its confirmation earlier today. The chart pattern could lead to the start of a 2 to 3 day correction.
A trade through 1.1179 will negate the closing price reversal top and signal a resumption of the uptrend.
The minor trend changes to down on a trade through 1.0991 and the main rend changes to down on a move through 1.0879.
The minor range is 1.0991 to 1.1179. Its 50% level at 1.1085 is the first downside target.
The main range is 1.0879 to 1.1179. Its retracement zone t 1.1029 to 1.0994 is the second downside target.
Daily Technical Forecast
Bearish Scenario
If the downside pressure continues then look for a break into the downtrending Gann angle at 1.1112. Crossing to the weak side of this angle is likely to trigger a break into the minor pivot at 1.1085. Since the main trend is up, look for buyers to show up on a test of this level.
Bullish Scenario
If the market rallies then look for a retest of yesterday’s high at 1.1179. Crossing to the strong side of the downtrending Gann angle at 1.1181 will indicate the buying is getting stronger. However, the trigger point for an acceleration to the upside is the long-term Fibonacci level at 1.1185.