EUR/USD Mid-Session Technical Analysis for June 21, 2021

The Euro is edging higher against the U.S. Dollar on Monday as traders calmed down enough following last week’s steep selloff to take profits and square up short positions. Helping to ease some of the pain from last week’s sell-off was a dip in Treasury yields and a recovery in demand for higher-risk assets.

At 11:55 GMT, the EUR/USD is trading 1.1898, up 0.0038 or +0.32%.

Early Monday, 30-year Treasury bond yields fell below 2% for the first time since February and those on 10-year securities slid under 1.40% as a sell-off in equities fueled demand for safe-haven assets. Thirty-year yields declined as much as nine basis points to 1.93%, and 10-year yields dropped the same amount to a four-month low of 1.35%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1848 will signal a resumption of the downtrend.

A trade through 1.2218 will change the main trend to up. This is highly unlikely but due to the prolonged move down in terms of price and time, the EUR/USD is ripe for a closing price reversal bottom.

The short-term range is 1.1704 to 1.2266. The single-currency is currently trading on the weak side of its retracement zone at 1.1919 to 1.1985, making it resistance.

The longer-term 50% resistance level is 1.2027.

The minor range is 1.2266 to 1.1848. Its 50% to 61.8% retracement zone comes in at 1.2057 to 1.2106.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Monday will be determined by trader reaction to the Fibonacci level at 1.1919.

Bearish Scenario

A sustained move under 1.1919 will indicate the presence of sellers. The first downside target is last week’s low at 1.1848. This is a potential trigger point for an acceleration to the downside with the March 31 bottom at 1.1704 the next major downside target.

Bullish Scenario

A sustained move over 1.1919 will signal the presence of buyers. Overtaking this level could trigger an acceleration to the upside with the 50% level at 1.1985 the next likely upside target.

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