Yahoo Finance EUR/USD Mid-Session Technical Analysis for February 12, 2018
The EUR/USD is trading higher on Monday shortly before the U.S. opening. There was a slight follow-through to the upside, however, the move was enough to confirm Friday’s closing price reversal bottom. This could fuel a 2 to 3 day rally or a retracement of the last break.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.2211 will negate the closing price reversal bottom and signal a resumption of the downtrend. Taking out 1.2164 will reaffirm the downtrend.
The main range is 1.1915 to 1.2537. Its retracement zone is 1.2226 to 1.2153. Inside this zone is a major 50% level at 1.2166. This zone stopped the selling on Friday at 1.2211, helping to form the potentially bullish closing price reversal bottom.
The short-term retracement zone is 1.2522 to 1.2211. If the short-term rally continues we could see a test of its retracement zone at 1.2367 to 1.2403. Since the main trend is down, sellers are likely to come in on a test of this zone.
Daily Technical Forecast
Based on the early price action, the direction of the EUR/USD the rest of the day will be determined by trader reaction to the steep downtrending Gann angle at 1.2242.
A sustained move over 1.2242 will signal the presence of buyers. The daily chart shows there is plenty of room to the upside. If this move generates enough upside momentum, we could see a rally into 1.2367 to 1.2403. A downtrending angle also passes through this zone at 1.2382, making it a valid upside target.
A sustained move under 1.2242 will indicate the presence of sellers. This should lead to a test of the 50% level at 1.2226. This is followed by Friday’s low at 1.2211.
The best support are price clusters at 1.2166 to 1.2164 and 1.2155 to 1.2153.
This article was originally posted on FX Empire
