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EUR/USD Mid-Session Technical Analysis for December 2, 2021

By:
James Hyerczyk
Updated: Dec 2, 2021, 21:31 GMT+00:00

The direction of the EUR/USD into the close on Thursday is likely to be determined by trader reaction to 1.1291.

EUR/USD

In this article:

The Euro is trading flat at the mid-session with traders reluctant to take a major position ahead of Friday’s U.S. Non-Farm Payrolls report. Meanwhile, traders continue to assess the potential impact of the Omicron coronavirus variant on the global economy, but with little information, their hands are tied at this time.

At 16:03 GMT, the EUR/USD is trading 1.1317, down 0.0002 or -0.02%.

Domestically, Euro Zone government bond yields fell on Thursday after a choppy start as the new Omicron coronavirus variant dampened risk sentiment, outweighing the impact of expectations for faster U.S. monetary policy tightening.

In other news, Euro Zone producer prices jumped more than expected in October, data showed on Thursday, driven mainly by a surge in energy prices, while employment eased again as the economy continued to recover from the pandemic-induced recession.

In the U.S., initial claims for unemployment insurance rose last week but held at levels consistent with how the job market looked before the COVID-19 pandemic devastated the U.S. jobs picture, the Labor Department reported Thursday.

Friday’s U.S. Non-Farm Payrolls report is expected to show the economy added 553K jobs in November. The Unemployment Rate is expected to dip to 4.5% and Average Hourly Earnings are expected to show a monthly increase of 0.4%.

Daily EUR/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 1.1186 will signal a resumption of the downtrend. A move through 1.1608 will change the main trend to up.

The minor trend is up. This is controlling the momentum. A trade through 1.1186 will change the minor trend to down.

The market is currently trading on the strong side of a long-term Fibonacci level at 1.1291, making it support. On the upside, resistance is layered at 1.1397, 1.1439 and 1.1493.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD into the close on Thursday is likely to be determined by trader reaction to 1.1291.

Bullish Scenario

A sustained move over 1.1291 will signal the presence of counter trend traders. They may be trying to form a potentially bullish secondary higher bottom.

Bearish Scenario

A sustained move under 1.1291 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into 1.1186, followed by the June 19, 2020 main bottom at 1.1168.

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

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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