The Euro is trading lower at the mid-session as quarter-end and month-end flows continue to support the U.S. Dollar. The rebalancing of portfolios by fund managers is also behind the Euro’s weakness.
At 1620 GMT, the is trading 1.2345, down 0.0073 or -0.59%.EUR.
The main trend is up according to the daily swing chart, however, momentum shifted to the downside with the formation of Tuesday’s closing price reversal top and today’s subsequent confirmation of the chart pattern.
A trade through 1.2239 will change the main trend to down. A move through 1.2476 will negate the closing price reversal top and signal a resumption of the uptrend.
The main range is 1.2555 to 1.2153. The EUR/USD straddled its retracement zone at 1.2354 to 1.2401 before moving below it in a sign of weakness.
The short-term range is 1.2239 to 1.2476. Its retracement zone at 1.2358 to 1.2330 is currently being tested. Trader reaction to this zone could determine the direction of the EUR/USD into the close. Since the main trend is up, buyers may step in to defend the trend.
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