EUR/USD Mid-Session Technical Analysis for August 24, 2021

The Euro is trading flat on Tuesday after clawing back from earlier weakness. The single-currency remains near a five-day high amid price action that suggests investors are becoming less concerned by the spread of the Delta variant after the U.S. Food and Drug Administration (FDA) granted full approval to the COVID-19 vaccine developed by Pfizer and BioNTech.

At 12:24 GMT, the EUR/USD is trading 1.1742, down 0.0003 or -0.02%.

Euro trader attention is also focused on the Jackson Hole conference on Friday, at which some investors expect the U.S. Federal Reserve Chair Jerome Powell to give hints about the possible timeline for tapering monetary stimulus.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has shifted to the upside.

A trade through 1.1805 will change the main trend to up. A move through 1.1664 will signal a resumption of the downtrend.

The short-term range is 1.1805 to 1.1664. The EUR/USD is currently testing its retracement zone at 1.1735 to 1.1751.

The minor range is 1.1664 to 1.1750. Its retracement zone at 1.1707 to 1.1697 is potential support.

The main range is 1.1909 to 1.1664. Its 50% level at 1.1787 is a potential upside target.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to 1.1735.

Bullish Scenario

A sustained move over 1.1735 will indicate the presence of buyers. The first upside target is 1.1751. This level is resistance, but also a trigger point for an acceleration to the upside with the next target coming in at 1.1787.

Bearish Scenario

A sustained move under 1.1735 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the minor retracement zone at 1.1707 to 1.1697.