EUR/USD Mid-Session Technical Analysis for April 1, 2021

The Euro is trading higher on Thursday, but inside yesterday’s range, suggesting investor indecision and impending volatility. Volume is a little on the light side as many of the major players may have taken to the sidelines ahead of the Good Friday holiday.

On the data front, traders will get the opportunity to react to reports from the U.S. on weekly unemployment claims, ISM Manufacturing PMI and Construction Spending.

At 11:14 GMT, the EUR/USD is trading 1.1739, up 0.0010 or +0.08%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum could shift to the upside if yesterday’s closing price reversal bottom is confirmed.

The main trend will change to up on a trade through 1.1989. This is highly unlikely, however. A trade through 1.1704 will negate the closing price reversal bottom and signal a resumption of the downtrend.

Taking out 1.1760 will confirm the closing price reversal bottom and could trigger the start of a 2 to 3 day counter-trend rally.

The short-term range is 1.1989 to 1.1704. Its 50% level at 1.1847 is a potential upside target. This is followed by the 50% to 61.8% retracement zone at 1.1888 to 1.1976. This zone is controlling the near-term direction of the common currency.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD will be determined by trader reaction to 1.1704 and 1.1760. However, there could be a problem with buying or selling breakouts because of the light volume.

Bearish Scenario

A sustained move under 1.1704 will indicate the presence of sellers. This could trigger the start of a break into 1.1603.

Bullish Scenario

A sustained move over 1.1760 will signal the presence of buyers. This could trigger the start of a 2 to 3 day counter-trend rally with the next likely target 1.1847.