EUR/USD Mid-Session Technical Analysis for October 9, 2017
The EUR/USD is trading higher on Monday, following through to the upside following the formation of a potentially bullish closing price reversal bottom on Friday, and its subsequent confirmation earlier today. Volume is thin due to a U.S. bank holiday.
Daily Technical Analysis
The main trend is down according to the daily swing chart, however, momentum shifted to the upside with the formation of the closing price reversal bottom.
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A trade through 1.1832 will change the main trend to up. A move through 1.1668 will negate the closing price reversal bottom and signal a resumption of the downtrend.
The support is a major retracement zone at 1.1695 to 1.1603. This zone was tested last week when the market reached 1.1668.
The short-term range is 1.1832 to 1.1668. Its retracement zone at 1.1750 to 1.1769 is the primary upside target. The lower or 50% level at 1.1750 was tested earlier today.
The intermediate range is 1.2033 to 1.1668. If the rally extends to the upside then its retracement zone at 1.1850 to 1.1894 will become the next upside target.
Daily Forecast
Based on the current price at 1.1740 and the earlier price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the 50% level at 1.1741.
A sustained move under 1.1750 will indicate the presence of sellers. This could trigger a pullback into 1.1712, followed by 1.1695 then 1.1668.
A sustained move over 1.1750 will signal the presence of buyers. This could fuel a fast rally into a resistance cluster at 1.1769 to 1.1773.
Since the main trend is down, we could see a bounce on the first test of 1.1750 to 1.1769. However, look for an acceleration to the upside if 1.1773 is taken out. This could trigger an acceleration into the main top at 1.1832.