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

By:
James Hyerczyk
Published: Jul 26, 2021, 12:12 UTC

The direction of the EUR/USD on Monday is likely to be determined by trader reaction to 1.1791.

EUR/USD

In this article:

The Euro is trading higher against the U.S. Dollar on Monday as investors turned their focus to this week’s two-day Federal Reserve meeting on Tuesday and Wednesday. Analysts expect the Fed to have detailed tapering discussions but without providing any concrete guidance as to the timing of the move. The Fed at its last meeting on June 16 dropped a reference to the coronavirus as a drag on the economy.

At 11:54 GMT, the EUR/USD is trading 1.1796, up 0.0026 or +0.22%.

In economic news, German business morale fell unexpectedly in July on continuing supply chain worries and rising coronavirus infections, a survey showed on Monday.

The Ifo Institute said its business climate index fell to 100.8 from a revised 101.7 in June. A Reuters poll of analysts had pointed to a July reading of 102.1.

Daily EUR/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum shifted to the upside on July 22. A trade through 1.1881 will change the main trend to up. A move through 1.1752 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum. A trade through 1.1830 will indicate that the momentum is getting stronger. The minor trend changes to down on a move through 1.1755.

The minor range is 1.1752 to 1.1830. Its 50% level or pivot is 1.1791.

The short-term range is 1.1881 to 1.1752. Its 50% level at 1.1817 is potential resistance.

The main retracement zone at 1.1864 to 1.1890 is additional resistance.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Monday is likely to be determined by trader reaction to 1.1791.

Bullish Scenario

A sustained move over 1.1791 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into 1.1817, followed by 1.1830. The latter is a potential trigger point for a quick surge into 1.1851 to 1.1864.

Bearish Scenario

A sustained move under 1.1791 will signal the presence of sellers. This could trigger a retest of the minor bottom at 1.1755 and the main bottom at 1.1752.

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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