EUR/USD Mid-Session Technical Analysis for July 31, 2014 » Fx …

EUR/USD Mid-Session Technical Analysis for July 31, 2014 » Fx …

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Daily EUR/USD Technical Analysis

Daily EUR/USD

The EUR/USD is posting an inside day at the mid-session. Downside momentum has slowed considerably since yesterday’s sell-off into a new low for the year. The sideways price action may be indicative of position squaring ahead of tomorrow’s U.S. Non-Farm Payrolls report.

The nearest downtrending angle drops in at 1.3350 today. This angle, moving down .002 per day from the 1.3650 top on July 10, stopped the break on Wednesday. Traders should treat this angle like a pivot. Although it is sloping downward, it could provide support, however, crossing to the weak side of this angle will make it resistance.

According to the weekly chart, the next major downside target is a November 2013 bottom at 1.3295.

Hourly EUR/USD Technical Analysis

Hourly EUR/USD

The main trend is down on the hourly chart. The new short-term range is 1.3366 to 1.3404. The pivot price of this range is 1.3385. This price is controlling the intraday direction of the EUR/USD today.

The market did try to breakout to the upside, but there wasn’t enough buying to drive the market higher. The market failed several times overnight at 1.3399.

Taking out 1.3404 will be a sign of strength, but the main trend will not turn up until the swing top at 1.3415 is taken out with conviction.

Watch 1.3385 the rest of the session. Maintaining a move under this price will mean weakness into the close. Overtaking it later in the day could trigger a short-covering rally into the close. Because of the uncertainty over tomorrow’s U.S. jobs report, traders may decide to straddle this price the rest of the session.

Remember that buying strength and selling weakness on low volume days can get you in trouble. It may be a good day to keep your powder dry. 

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EUR/USD Mid-Session Technical Analysis for July 31, 2014 » Fx …

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