EUR/USD Mid-Session Technical Analysis for July 28, 2016
The EUR/USD is trading higher at the mid-session. After several days of consolidation, the Forex pair is breaking out of its short-term range, reaching its highest level since July 15.
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The main trend is down according to the daily swing chart. However, momentum is to the upside due to the formation of a potentially bullish closing price reversal bottom on July 25 at 1.0951. Additionally, the buying was strong enough yesterday to turn the Minor Trend up on a trade through 1.1030.
We can see that the market has crawled through several layers of retracement levels, putting it in a position to extend the rally if a move can be sustained over 1.1096.
The daily chart opens up to the upside over 1.1096 with the next potential target the major 50% level at 1.1168. This is followed by a long-term downtrending angle at 1.1186.
A sustained move under 1.1096 will indicate the presence of sellers. They could drive the Euro back into 50% levels at 1.1068 and 1.1048. The latter is followed by a long-term support angle at 1.1030.
Look for the upside bias to continue into the close on a sustained move over 1.1096. The way of least resistance is up so we could see a strong breakout move if big buying volume comes in.
The inability to overcome 1.1096 will indicate there is a seller in the market. However, due to the number potential support levels, any break is likely to be labored.