The Euro is trading higher on Wednesday, but still working inside last Friday’s wide range, which suggests investor indecision and impending volatility. Keeping a lid on the Euro is the strengthening U.S. economy and rising Treasury yields. Underpinning the single currency is increasing demand for risky assets and signs of an improving global economy.
At 11:56 GMT, the EUR/USD is trading 1.1303, up 0.0022 or +0.20%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.1324 will signal a resumption of the uptrend. The main trend will change to down on a trade through 1.1184.
The minor trend is also up. A trade through 1.1230 will change the minor trend to down.
The main range is 1.1448 to 1.1184. Its retracement zone at 1.1316 to 1.1347 is providing resistance.
The major upside target zone is 1.1374 to 1.1420. The major downside target level is 1.1185.
Daily Technical Forecast
Based on the early price action and the current price at 1.1303, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1294.
A sustained move over 1.1294 will indicate the presence of buyers. If this creates enough upside momentum then look for a retest of the 50% level at 1.1316, and uptrending Gann angle at 1.1322 and high at 1.1324.
Overtaking 1.1324 could trigger an acceleration to the upside with the next targets a Fibonacci level at 1.1347 and a downtrending Gann angle at 1.1348. The latter is a potential trigger point for an acceleration to the upside with 1.1374 the next major upside target.
Taking out 1.1294 will signal the return of sellers. This could trigger an acceleration to the downside with the next target a support cluster at 1.1250 to 1.1248. Crossing to the weak side of an uptrending Gann angle at 1.1239 will put the EUR/USD in a bearish position.
This article was originally posted on FX Empire
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