Yahoo Finance EUR/USD Mid-Session Technical Analysis for December 7, 2018
The Euro is trading nearly flat shortly ahead of the U.S. opening and the release of the U.S. Non-Farm Payrolls report at 1330 GMT. Bullish traders are hoping for a weak jobs report because this will increase the chances the U.S. Federal Reserve will pull back on its plans to raise rates as many as three-times in 2019. This will make the U.S. Dollar a less-attractive investment.
At 0846 GMT, the EUR/USD is trading 1.1381, up 0.0004 or +0.04%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom on November 28.
The main trend will change to up on a trade through 1.1474. A move through 1.1267 will signal a resumption of the downtrend.
The EUR/USD has been trading inside a series of retracement levels for 11 sessions. This tends to indicate investor indecision and impending volatility. Because of this chart pattern, investors should look for volatility when the NFP report is released.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the 50% level at 1.1370.
Bullish Scenario
A sustained move over 1.1370 will indicate the presence of buyers. The first upside target is a Fib level at 1.1395. Taking out this level will indicate the buying is getting stronger. This could trigger a rally into 1.1422. Overtaking this level will lead to a test of 1.1447 then 1.1474.
Bearish Scenario
A sustained move under 1.1370 will signal the presence of sellers. The next two downside targets are 1.1345 and 1.1315.
The daily chart starts to open up to the downside under 1.1315 with the next targets coming in at 1.1305 and 1.1367.
This article was originally posted on FX Empire