EUR/USD Mid-Session Technical Analysis for August 21, 2017

The EUR/USD is trading slightly lower shortly before the U.S. opening. The Forex pair is trading inside Friday’s range which suggests investor indecision and impending volatility. There are no major reports today. Most of the major traders may be waiting to hear from Fed Chair Janet Yellen and European Central Bank President Mario Draghi on Friday.

Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down last week. A trade through 1.1847 will change the main trend to up. A move through 1.1661 will signal a resumption of the downtrend.

If the selling pressure continues then the major retracement zone at 1.1611 to 1.1540 will become the primary downside target.

The short-term range is 1.1910 to 1.1661. Its retracement zone at 1.1786 to 1.1815 is the primary upside target. Since the main trend is down, sellers may come in on a test of this zone. These sellers will be looking to form another secondary lower top.

Forecast

Based on the current price at 1.1754 and the current price action, the nearest upside target is a downtrending angle at 1.1780 and the nearest downside target is the downtrending angle at 1.1727.

If today’s upside pressure continues then look for a rally into a downtrending angle at 1.1780. This is followed by a 50% level at 1.1786 and another downtrending angle at 1.1787. Watch for sellers especially on a test of the resistance cluster at 1.1786 to 1.1787.

The resistance cluster is also a trigger point for an acceleration into the short-term Fibonacci level at 1.1815.

On the downside, crossing to the weak side of the downtrending angle at 1.1727 will signal the presence of sellers. This could trigger an acceleration to the downside with potential targets 1.1661 and 1.1644.

The key area today is 1.1786 to 1.1787.