EUR/USD Mid-Session Technical Analysis for July 13, 2021

The Euro is trading lower on Tuesday against the U.S. Dollar after the government reported a larger-than-expected jump in consumer inflation prices, driving up Treasury yields and making the greenback a more attractive investment.

U.S. consumer prices rose by the most in 13 years in June amid supply constraints and a continued rebound in the costs of travel-related services from pandemic-depressed levels as the economic recovery gathered momentum.

At 13:47 GMT, the EUR/USD is trading 1.18096, down 0.0051 or -0.43%.

The consumer price index (CPI) increased 0.9% last month after advancing 0.6% in May, the Labor Department said on Tuesday. Year to year, the CPI jumped 5.4%, the largest gain since August 2008, following a 5.0% increase in the 12 months through May.

Excluding the volatile food and energy components, the CPI accelerated 0.9% after increasing 0.7% in May. Core CPI surged 4.5% on a year-on-year basis, the largest increase since November 1991, after rising 3.8% in May.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1782 will signal a resumption of the downtrend. A move through 1.1895 will change the main trend to up.

The minor trend is also down. A trade through 1.1881 will change the minor trend to up. This will shift momentum to the upside.

The minor range is 1.1895 to 1.1782. The EUR/USD is currently straddling its 50% level at 1.1839.

The short-term range is 1.1975 to 1.1782. Its retracement zone at 1.1879 to 1.1901 is resistance and a trigger point for an acceleration to the upside.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD into the close on Tuesday is likely to be determined by trader reaction to 1.1839.

Bearish Scenario

A sustained move under 1.1839 will indicate the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into 1.1782. Taking out this level will reaffirm the downtrend and could trigger a plunge into the March 31 main bottom at 1.1704.

Bullish Scenario

A sustained move over 1.1839 will signal the presence of buyers. This could lead to a labored rally due to a series of potential resistance points at 1.1879, 1.1881, 1.1895 and 1.1901.

Taking out 1.1901 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with 1.1975 the next likely upside target price.