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EUR/USD Mid-Session Technical Analysis for October 21, 2019

James Hyerczyk

The Euro is trading lower on Monday after posting a two-sided trade earlier in the session. The lack of clarity over Brexit is creating uncertainty, which is making it difficult for the bulls and the bears to establish a position. This uncertainty is likely to continue until European Union officials make a decision over an extension of the Brexit deadline, which could be as early as today, or UK parliament members vote on Prime Minister Boris Johnson’s exit deal later this week.

At 13:06 GMT, the EUR/USD is trading 1.1159, down 0.0011 or -0.09%.

Daily EUR/USD

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out Friday’s high at 1.1171.

The main trend will change to down on a trade through 1.0879. This is highly unlikely, however. The Euro is up 14 sessions from its last main bottom on October 1, which puts it in a window of time for a potentially bearish closing price reversal top.

On the upside, the major resistance is a long-term Fibonacci level at 1.1185.

Daily Technical Forecast

Based on the early price action and the current price at 1.1159, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to the uptrending Gann angle at the same price.

Bullish Scenario

A sustained move over 1.1159 will indicate the presence of buyers. The first upside targets are 1.1182 and 1.1185. Look for an acceleration to the upside if buyers can overcome 1.1185. The next major target over this level is the August 6 top at 1.1250.

Bearish Scenario

A sustained move under 1.1159 will signal the presence of sellers. The daily chart is wide open under this angle with the next target angle coming in at 1.1115. This is also the trigger point for an acceleration to the downside with 1.1019 the next potential target angle.

Side Notes

Traders can also use Friday’s close at 1.1170 as an important pivot price today. We’ve already had a higher-high so a close below this level will form a closing price reversal top. This could trigger the start of a 2 to 3 day counter-trend correction.

This article was originally posted on FX Empire

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