EUR/USD Mid-Session Technical Analysis for March 9, 2018
The EUR/USD is trading lower shortly after the U.S. Labor Department reported Friday that the economy added 313,000 jobs in February, blowing away expectations, while the unemployment rate remained at 4.1 percent. Traders had been expecting non-farm payroll growth of 200,000 and the unemployment rate to decline one-tenth of a percent to 4 percent. Average Hourly Earnings were a disappointing 0.1%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The recent five day rally may have changed momentum, but that move was stopped by yesterday’s closing price reversal top.
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A trade through 1.2446 will negate the closing price reversal top and change the main trend to up. A move through 1.2153 will signal a resumption of the downtrend.
The main range is 1.2555 to 1.2153. Its retracement zone at 1.2354 to 1.2401 is new resistance. This zone is also controlling the longer-term tone of the EUR/USD.
The short-term range is 1.2153 to 1.2446. Its retracement zone at 1.2300 to 1.2265 is currently being tested. This zone is controlling the short-term tone of the market. Aggressive counter-trend buyers may step in to try to form a secondary higher bottom. Trend traders are going to try to drive the Forex pair through this zone.
The longer-term retracement zone at 1.2235 to 1.2160 is the major support. Another major support level is the 50% level at 1.2166. The best support cluster is 1.2166 to 1.2160.
Daily Technical Forecast
Based on the early trade, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to an uptrending Gann angle at 1.2273.
A sustained move over 1.2273 will indicate buyers are returning. This could drive the Forex pair into 1.2300. Overtaking this level could trigger an acceleration into a steep downtrending Gann angle at 1.2126.
A sustained move under 1.2273 will signal the presence of sellers. This is followed by 1.2265. This is the trigger point for an acceleration into 1.2235 then the uptrending Gann angle at 1.2213.