EUR/USD Mid-Session Technical Analysis for June 30, 2021

The Euro is edging higher against the U.S. Dollar on Wednesday as U.S. Treasury yields fell amid anticipation over the release of the June ADP private payrolls report, due out later in the morning. Traders expect the report to show the private sector of the economy added 555,000 jobs in June.

At 10:33 GMT, the EUR/USD is trading 1.1890, down 0.0008 or -0.06%.

In other news, Euro Zone inflation eased this month, leveling off for the summer months before an expected move well above the European Central Bank’s target towards the autumn on higher commodity prices.

The focus on today’s private payrolls report, due to be released at 12:30 GMT, is expected to be short-lived as the real focus for traders is on the June U.S. Non-Farm Payrolls report. The average forecast for Friday’s jobs report is for a rise of 690,000 jobs, but the variation among the 63 estimates is large, ranging from 400,000 to more than a million.

Besides the looming data, a fresh spike in global coronavirus infections and in restrictive measures to contain them kept a lid on currency movements.

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 move through 1.1975 will change the main trend to up.

The main range is 1.1704 to 1.2266. The market is currently trading on the weak side of its retracement zone at 1.1919 to 1.1985.

The minor range is 1.1848 to 1.1975. Its 50% level or pivot at 1.1911 is potential resistance.

If the main trend changes to up then look for buyers to face challenges at 1.1985, 1.2027 and 1.2057.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to 1.1911 and 1.1919.

Bearish Scenario

A sustained move under 1.1911 will indicate the presence of sellers. The first downside target is yesterday’s low at 1.1878. Taking out this level will indicate the selling is getting stronger with 1.1848 the next likely downside target. This is a potential trigger point for an acceleration to the downside with 1.1704 the next major downside target.

Bullish Scenario

A sustained move over 1.1919 could trigger a short-covering rally with the resistance cluster at 1.1975 to 1.1985 the next likely target. Overtaking 1.1985 will indicate the buying is getting stronger with 1.2027 the next upside target.