EUR/USD Mid-Session Technical Analysis for November 22, 2017
The EUR/USD is trading slightly better on Wednesday. Volume is light with banks closed in Japan and many of the major players in the U.S. taking the day off ahead of the real holiday on Thursday. We could also be looking at position-squaring ahead of today’s release of the minutes from the Fed monetary policy meeting at 1900 GMT.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum has been trending lower since November 15.
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A trade through 1.1712 will indicate the selling pressure is getting stronger. The minor trend changes to up on a move through 1.1821. The main trend turns up on a move through 1.1860.
The main range is 1.1553 to 1.1860. Its retracement zone is 1.1707 to 1.1670. Inside this zone is a major 50% level at 1.1702.
The combination of the two zones creates a support cluster at 1.1707 to 1.1702. Yesterday’s rally stopped at 1.1712 so we know investors are respecting this area.
The short-term range is 1.1860 to 1.1712. If today’s rally continues then look for a test of its retracement zone at 1.1786 to 1.1804.
Aggressive counter-trend traders may come in on a test of this zone in an effort to form a potentially bearish secondary lower top.
Volume is expected to come in below average so be careful buying strength and selling weakness. It’s possible that we’ve already seen the range for the day.