The Euro is trading at its highest level against the U.S. Dollar since August 26 on Friday as hopes that a Brexit deal between the United Kingdom and the European Union could prevent an economic recession in the Euro Zone.
Some will argue that the U.S. Dollar is trading weaker against the Euro as expectations that the Federal Reserve may cut interest rates at the October 30 meeting added further optimism, given the prospect of a tightening interest rate differential between U.S. Government bond yields and German Government bond yields.
At 12:16 GMT, the EUR/USD is trading 1.1144, up 0.0018 or +0.16%.
Daily Technical Analysis
The main trend is up according to the daily swing. The EUR/USD is in no position to change the trend to down, but it is up 13 sessions from its last bottom which puts it inside the window of time for a closing price reversal top.
This chart pattern won’t change the trend to down, but it could trigger a normal 2 to 3 counter-trend correction.
The main rage is 1.1164 to 1.0879. Its retracement zone at 1.1055 to 1.1021 is support.
Daily Technical Forecast
Based on the early price action and the current price at 1.1144, the direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1139.
A sustained move over 1.1139 will indicate the buying is getting stronger. If this move generates enough upside momentum then look for the rally to possibly extend into the August 26 main top at 1.1164. This is the last potential resistance before the major resistance level at 1.1185.
A sustained move under 1.1139 will signal the presence of sellers. The first target is a downtrending Gann angle at 1.1115. This angle is a potential trigger point for an acceleration to the downside with 1.1055 the next major target.
The early price action suggests the upside bias should strengthen on a sustained move over 1.1139. A downside bias will develop on a sustained move under 1.1115.
This article was originally posted on FX Empire
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