EUR/USD Mid-Session Technical Analysis for October 5, 2017

The EUR/USD is trading flat shortly before the U.S. opening. It may just sit in a range today as investors prepare for Friday’s U.S. Non-Farm Payrolls report.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, the closing price reversal bottom on October 3 has signaled a shift in short-term momentum.

A trade through 1.1695 will negate the closing price reversal bottom and signal a resumption of the downtrend. A move through 1.1832 will change the main trend to up.

The major support is the retracement zone at 1.1702 to 1.1610.

The short-term range is 1.1832 to 1.1695. Its retracement zone at 1.1764 to 1.1780 is currently acting like resistance.

The intermediate range is 1.2033 to 1.1695. If the trend changes to up then its retracement zone at 1.1864 to 1.1904 will become the primary upside target.

Daily Forecast

Based on the current price at 1.1755 (1046 GMT) and the earlier price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the 50% level at 1.1764.

A sustained move under 1.1764 will indicate the presence of sellers. Breaking below the downtrending angle at 1.1752 will indicate the selling is getting stronger. This could lead to test of the uptrending angle at 1.1735.

If 1.1735 fails to hold as support then don’t be surprised by an acceleration to the downside with the next major targets 1.1702 and 1.1695.

A sustained move over 1.1764 will signal the presence of buyers. This is followed by the Fibonacci level at 1.1780. This is a possible trigger point for an acceleration into the long-term downtrending angle at 1.1813. This is followed by the main top at 1.1832.

Basically, look for a downside bias on a sustained move under 1.1764 and for an upside bias to develop on a sustained move over 1.1780.