EUR/USD Mid-Session Technical Analysis for March 10, 2021

The Euro is trading nearly flat against the U.S. Dollar at the mid-session on Wednesday as traders are showing little reaction to the U.S. consumer price report released earlier in the session.

U.S. consumer prices increased solidly in February as the cost of gasoline rose further, leading to the biggest annual gain in a year, but underlying inflation remained tepid amid sluggish demand for services like airline travel.

At 16:20 GMT, the EUR/USD is trading 1.1893, down 0.0007 or -0.06%.

The Labor Department said on Wednesday its consumer price index increased 0.4% last month after rising 0.3% in January. In the 12 months through February, the CPI gained 1.7%, the largest rise since February 2020, after climbing 1.4% in the 12 months through January.

Last month’s rise in the CPI was in line with economists’ expectations.

The core CPI rose 1.3% on a year-on-year basis, retreating from January’s 1.4% gain.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum may have shifted to the upside with the confirmation of Tuesday’s closing price reversal bottom. A trade through 1.1836 will negate the closing price reversal bottom, signaling a resumption of the downtrend.

The nearest support is the November 23 main bottom at 1.1836.

The minor range is 1.2113 to 1.1836. Its 50% level at 1.1974 is the first upside target, followed by a short-term Fibonacci level at 1.2010.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD into the close is likely to be determined by trader reaction to 1.1899.

Bullish Scenario

A sustained move over 1.1899 will indicate the presence of buyers. If this is able to generate enough upside momentum over the near-term then look for the rally to possibly extend into 1.1974 to 1.2010. Since the main trend is down, sellers are likely to come in on a test of this area.

Bearish Scenario

A sustained move under 1.1899 will signal the presence of sellers. The first downside target is a minor 50% level at 1.1881. Aggressive counter-trend buyers could come in on the first test of this level.

If 1.1881 fails then look for the selling to possibly extend into 1.1836. Taking out this level should lead to a test of 1.1800.