EUR/USD Mid-Session Technical Analysis for June 3, 2021

The Euro is trading lower against the U.S. Dollar on Thursday as U.S. bond yields rose after two new data releases pointed to a continued recovery in the U.S. labor market.

Private payrolls rose than expected in May, according to a report from ADP, while weekly jobless claims came in near expectations at 385,000. That continues a downward trend in initial claims.

At 13:17 GMT, the EUR/USD is trading 1.2156, down 0.0054 or -0.44%.

In other economic news, Euro Zone business activity surged in May as the easing of some coronavirus related restrictions injected life into the bloc’s dominant services industry, a survey showed, echoing data on Tuesday which showed factories had their best month on record.

IHS Markit’s final composite Purchasing Manager’s Index (PMI), seen as a good gauge of economic health, jumped to 57.1 last month from April’s 53.8, its highest level since February 2018. May’s final reading was ahead of a preliminary 56.9 indication and comfortably above the 50 mark separating growth from contraction.

An index covering the service industry soared to a near three-year high of 55.2 from 50.5, just beating the 55.1 flash estimate.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.2133 will change the main trend to down. A move through the two main tops at 1.2254 and 1.2266 will reaffirm the uptrend.

The minor range is 1.2266 to 1.2133. Its 50% level at 1.2200 is resistance.

The first short-term range is 1.2052 to 1.2266. Its 50% level at 1.2159 is currently being tested.

The second short-term range is 1.1986 to 1.2266. Its 50% level at 1.2125 is a potential support level. It is also the trigger point for an acceleration to the downside.

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 the pivot at 1.2159.

Bearish Scenario

A sustained move under 1.2159 will indicate the presence of sellers. This could trigger a break into the main bottom at 1.2133. Taking out this level will change the main trend to down with 1.2125 the next target. If this price fails as support then look for an acceleration to the downside with 1.2052 to 1.2027 the next likely downside target.

Bullish Scenario

A sustained move over 1.2159 will signal the presence of buyers. This could trigger a rally into 1.2200. Overcoming this level could trigger a test of the two main tops at 1.2254 and 1.2266.