EUR/USD Reaction to 1.1377 Pivot Sets the Early Tone.

EURUSD.The direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to the pivot at 1.1377.The Euro is edging lower against the U.S. Dollar early Tuesday after declining the previous session as investors continued to demand greenbacks despite chatter that the Federal Reserve tightening plans were largely priced in. On Friday, the single-currency hit a two-month high.At 05:32 GMT, the EUR/USD is trading 1.1397, down 0.0009 or -0.07%. On Friday, the Invesco CurrencyShares Euro Trust settled at $106.08, down $0.34 or -0.32%.

Daily Swing Chart Technical Analysis.

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top on Friday.A trade through 1.1483 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 1.1272 will change the main trend to down.

The minor range is 1.1272 to 1.1483. Its 50% level at 1.1377 is the next downside target and potential support.The short-term range is 1.1186 to 1.1483. Its retracement zone at 1.1335 to 1.1300 is another potential target and the best value area.The main range is 1.1692 to 1.1186. Its retracement zone at 1.1439 to 1.1499 is resistance. This zone stopped the rally on Friday at 1.1483.

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