EUR/USD Mid-Session Technical Analysis for March 26, 2018
The Euro is trading higher on Monday as tensions ease over the threat of a trade war between Europe and the United States over recently imposed tariffs on steel and aluminum. A recovery in the stock markets is also helping to drive traders into the Euro. With the Fed signaling as many as two more rate hikes later this year, the focus is now on the European Central Bank which may raise rates sooner-than-expected, depending on inflation.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The trade through the March 14 main top at 1.2412 changed the main trend to up earlier today. If this generates enough upside momentum, we could see a move into the March 8 main top at 1.2446. This is another trigger point for a surge to the upside.
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The main range is 1.2555 to 1.2153. The EUR/USD is straddling its retracement zone at 1.2354 to 1.2401 today. Trader reaction to this zone will help determine the longer-term tone of the market.
The short-term range is 1.2153 to 1.2446. Its retracement zone at 1.2300 to 1.2265 is the primary downside target and the best support.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the EUR/USD the rest of the session will be determined by trader reaction to the main Fibonacci level at 1.2401.
A sustained move over 1.2401 will indicate the presence of buyers. Look for the rally to expand on a sustained move over 1.2412. This could fuel a move into the next main top at 1.2446. This price is a potential trigger point for an acceleration to the upside with targets coming in at 1.2555 and 1.2569.
A sustained move under 1.2401 will signal the presence of sellers. If this move brings in the sellers then look for a move back to 1.2354. The daily chart opens up under this level with the next target coming in at 1.2300.