EUR/USD Mid-Session Technical Analysis for April 9, 2021

Euro is trading lower on Friday as the U.S. Dollar and U.S. Treasury yields recaptured some of this week’s losses. The single currency was boosted on Thursday by unexpectedly strong Euro Zone economic data, weaker than expected U.S. weekly initial unemployment claims and the dovish Fed minutes from Wednesday. Despite today’s slight setback, the Euro is poised for its largest weekly percentage gains for the year, up around 1%.

At 11:46 GMT, the EUR/USD is trading 1.1893, down 0.0023 or -0.19%.

The Euro fell a quarter of a percent against the dollar earlier today after mixed economic data from Germany, showing a rise in exports in February but a surprise fall in industrial output in separate releases.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. The main trend will change to up on a trade through 1.1989. A move through 1.1704 will signal a resumption of the downtrend.

The EUR/USD is also up seven days from its last main bottom, which puts it inside the window of time for a potentially bearish closing price reversal top.

The minor trend is up. This is controlling the momentum. A trade through 1.1738 will change the minor trend to down.

The main range is 1.1603 to 1.2349. The EUR/USD is currently testing its retracement zone at 1.1888 to 1.1976. This zone is controlling the near-term direction of the common currency.

The first minor range is 1.1989 to 1.1704. Its 50% level at 1.1847 is a potential support level.

The second minor range is 1.1704 to 1.1927. Its 50% level at 1.1816 is another potential downside target and support level.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Friday is likely to be determined by trader reaction to 1.1888.

Bullish Scenario

A sustained move over 1.1888 will indicate the presence of buyers. The first upside target is 1.1927. Taking out this level could trigger a really into a resistance cluster at 1.1947, 1.1976, 1.1989 and 1.1990. The latter is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 1.1888 will signal the presence of sellers. This could trigger a short-term break into a pair of 50% levels at 1.1847 and 1.1816.

Look for buyers on the first test of 1.1816, but if it fails, we could see an acceleration to the downside.