EUR/USD Mid-Session Technical Analysis for April 29, 2021

The Euro is trading lower against the U.S. Dollar on Thursday after hitting a nine-week high. The reversal was fueled after U.S. Treasury yields added to earlier gains following the release of strong economic growth data for the first quarter.

The yield on the benchmark 10-year Treasury note climbed 5 basis points to 1.68%. The yield on the 30-year Treasury bond rose about 4 basis points to 2.344%.

At 15:50 GMT, the EUR/USD is trading 1.2115, down 0.0009 or -0.07%. This is down from an intraday high of 1.2150.

Economic activity surged to start 2021. The U.S. Commerce Department said first-quarter gross domestic product rose 6.4%, compared to the 6.5% expected by economists polled by Dow Jones.

The Labor Department, meanwhile, reported that initial jobless claims last week totaled 553,000, just above the 528,000 estimate issued by Dow Jones.

In other news, Euro Zone economic sentiment surged in April as vaccination campaigns against the coronavirus gathered speed, with sharp gains across all sectors of the economy that economists said marked the end of the pandemic-induced recession.

Daily Swing Chart Technical Analysis

The main trend is up according to the swing chart. However, the intraday price action suggests momentum may be getting ready to shift to the downside.

A trade through the intraday high at 1.2150 will signal a resumption of the uptrend. The main trend will change to down on a trade through 1.2056.

The short-term range is 1.2243 to 1.1704. The market is currently trading on the strong side of its retracement zone at 1.2038 to 1.1974, making it 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 Forex pair.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD into the close will be determined by trader reaction to 1.2124.

Bullish Scenario

A sustained move over 1.2124 will indicate the presence of buyers. The first upside target is 1.2150. Taking out this level could create the momentum needed to challenge the February 25 main top at 1.2243 over the near-term.

Bearish Scenario

A sustained move under 1.2124 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into 1.2056. Taking out this level will change the main trend to down. This could trigger a break into the short-term retracement zone at 1.2038 to 1.1976.

Side Notes

A close under 1.2124 will form a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.

For a look at all of today’s economic events, check out our economic calendar.