EUR/USD Mid-Session Technical Analysis for August 26, 2021

The Euro is trading lower against the U.S. Dollar on Thursday, pressured by a rise in U.S. Treasury yields to more than 1.34% in a mostly low volume trade. The two-sided price action suggests investors are positioning themselves ahead of a speech by Federal Reserve Chairman Jerome Powell on Friday that could offer clues as to the Fed’s plans for tapering its monetary stimulus.

At 13:40 GMT, the EUR/USD is trading 1.1750, down 0.0023 or -0.20%.

In other news, the U.S. economy grew a bit faster than initially thought in the second quarter, lifting the level of gross domestic product above its pre-pandemic peak, as massive fiscal stimulus and vaccinations against COVID-19 boosted spending.

A separate report from the Labor Department on Thursday showed initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 353,000 for the week ended August 21. Economists polled by Reuters had forecast 350,000 applications for the latest week.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. 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 minor trend is up. A trade through 1.1726 will change the minor trend to down.

The short-term range is 1.1909 to 1.1664. Its 50% level at 1.1787 is resistance.

The main retracement zone resistance is 1.1820 to 1.1856.

The new minor range is 1.1664 to 1.1779. Its retracement zone at 1.1722 to 1.1708 is the nearest downside target and potential support.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Thursday is likely to be determined by trader reaction to 1.1753.

Bullish Scenario

A sustained move over 1.1753 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into 1.1779, followed by 1.1787.

Bearish Scenario

A sustained move under 1.1753 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the minor bottom at 1.1726, followed by the minor retracement zone at 1.1722 to 1.1708.