EUR/USD Mid-Session Technical Analysis for August 24, 2016
The EUR/USD is trading lower at the mid-session. The market is under pressure due to increasing concerns that Fed Chair Janet Yellen will side with recent Fed members and present a hawkish front when she delivers her speech at the Jackson Hole, Wyoming central bankers’ conference on Friday.
Technically, the main trend is down according to the daily swing chart. Despite a bullish tone most of the month, mainly due to short-covering and a shift in momentum, the main trend never turned up. It will turn up on a trade through 1.1426, the June 24 main top.
Your capital is at risk
A pair of minor tops come in at 1.1355 and 1.1366. The nearest minor bottom is 1.1270. All of these prices are potential trigger points for breakouts.
On the upside, the nearest resistance angle comes in at 1.1319. Overtaking this angle could create enough upside momentum to challenge the minor tops at 1.1355 and 1.1366 and another downtrending angle at 1.1372.
The downside looks most vulnerable with 1.1270 the first target. Taking out this price with conviction could trigger an acceleration to the downside with the next two targets coming in at 1.1211 and 1.1171. However, because of the light volume, you have to be careful about selling weakness through 1.1270. Selling volume has to be on your side or you risk getting caught in a whipsaw market.