EUR/USD Mid-Session Technical Analysis for April 23, 2021

The Euro is trading higher on Friday, hovering just under a seven-week high after flash purchasing managers’ index numbers for April came in better than expected in the Euro Zone, which supported the view that the region’s economic recovery is accelerating.

At 10:35 GMT, the EUR/USD is trading 1.2049, up 0.0033 or +0.28%.

The flash PMI report offset losses that were fueled after European Central Bank (ECB) Christine Lagarde squashed speculation that policymakers will start to consider a tapering of bond purchases.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.2080 will signal a resumption of the uptrend. A trade through 1.1943 will change the main trend to down.

Taking out 1.2080 will also turn 1.1994 into a new main bottom.

The short-term range is 1.2243 to 1.1704. The EUR/USD is currently trading on the strong side of its retracement zone at 1.2038 to 1.1974. This zone is new support.

The main range is 1.1603 to 1.2349. Its retracement zone at 1.1976 to 1.1888 is controlling the near-term direction of the EUR/USD.

The best support is the price cluster formed by a pair of 50% levels at 1.1976 to 1.1974.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Friday will be determined by trader reaction to 1.2038.

Bullish Scenario

A sustained move over 1.2038 will indicate the presence of buyers. If this generates enough upside momentum, we could see a test of 1.2080. Taking out this level will indicate the buying is getting stronger with 1.2113 the next target.

Bearish Scenario

A sustained move under 1.2038 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into 1.1976 to 1.1974. Since the main trend is up, buyers are likely to come in on a test of this area.

A trade through 1.1974 will indicate the selling is getting stronger. This is the last potential support before the main bottom at 1.1943.