EUR/USD Mid-Session Technical Analysis for December 9, 2016
The EUR/USD is trading lower on Friday. The market is still feeling pressure from yesterday’s European Central Bank Decision. Higher global equity markets and high expectations for a rate hike by the Fed on December 14 are also weighing on the Forex pair.
Technical Analysis
The main trend is up according to the daily swing chart. However, Thursday’s dramatic closing price reversal top shifted the momentum to the downside. Taking out 1.0597 confirmed the chart pattern earlier today.
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A trade through 1.0503 will turn the main trend to down. Taking out 1.0872 will signal a resumption of the uptrend.
The short-term range is 1.0503 to 1.0872. Its 50% level or pivot is 1.0689. This price is controlling the short-term direction of the market.
The main range is 1.1299 to 1.0503. Its retracement zone is 1.0901 to 1.0995.
Forecast
Based on the current price at 1.0574, the direction of the EUR/USD today will be determined by trader reaction to the short-term uptrending angle at 1.0583.
A sustained move under 1.0583 will signal the presence of sellers. The next target is 1.0543. This is the last potential support angle before the 1.0503 main bottom.
A sustained move over 1.0583 will indicate the presence of buyers. This could create enough upside momentum to challenge the angle at 1.0663. This is followed by the pivot price at 1.0689.
Look for a breakout to the upside if the buying is strong enough to sustain move over 1.0689.
Watch the price action and read the order flow at 1.0583 the rest of the session. This will tell us if the buyers or the sellers are controlling the market.