EUR/USD Mid-Session Technical Analysis for April 27, 2018

The EUR/USD continues to feel the heat from yesterday’s dovish European Central Bank monetary policy statement and a spike in U.S. Treasury yields throughout the week. Today, investors are bracing for three key U.S. reports:  GDP, Employment Cost Index and Consumer Confidence.

Traders will be looking for any signs of inflation in these reports. All are capable of moving the markets especially the GDP and Employment Cost report.

GDP is expected to have risen by 2.0% during the first quarter. A stronger than expected number could drive U.S. interest rates higher. This would make the U.S. Dollar a more attractive asset. Higher than expected employment costs will also support the Fed’s plan to raise interest rates at least two more times this year.

Daily Technical Swing Chart Analysis

The main trend is down according to the daily swing chart. However, it began today’s session in the window of time for a closing price reversal bottom.

If the downside momentum continues then look for a test of the Fibonacci level. This is followed by the 2018 close at 1.2001.

On the upside, the nearest resistance levels are 1.2136 and 1.2166.

Daily Technical Swing Chart Forecast

Based on the early trade, it looks like there is enough downside momentum to challenge 1.2037 then 1.2001. We could start to see aggressive counter-trend buyers coming especially on a test of last year’s close at 1.2001.

On the upside, buyers will have to grind through 1.2136 and 1.2166 before we’ll likely see an acceleration to the upside.