EUR/USD Mid-Session Technical Analysis for March 12, 2021

The Euro is trading lower late in the session but off its lows. The single-currency fell against the greenback earlier in the session as a surge in Treasury yields reignited inflation fears that had been dampened since Wednesday after the U.S. government released a tepid consumer price report. The jump in yields sparked a sell-off in riskier assets. The move also allowed the U.S. Dollar to recapture its losses from yesterday’s session.

At 18:57 GMT, the EUR/USD is trading 1.1954, down 0.0032 or -0.27%.

In economic news, data on Friday showed U.S. producer prices (PPI) had their largest annual gain in nearly 2-1/2 years, though considerable slack in the labor market could make it harder for businesses to pass on the higher costs to consumers.

Finally, the European Central Bank said on Thursday that it would increase the pace of its money printing to prevent a rise in Euro Zone bond yields to support the economic recovery.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of a potentially bullish closing price on March 9.

A trade through 1.1836 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a move through 1.2243.

The minor trend is also down. A trade through 1.1990 will change the minor trend to up. This will also shift momentum to the upside.

The main range is 1.1800 to 1.2349. Its retracement zone at 1.2010 to 1.2074 is the strongest resistance. It’s controlling the near-term direction of the EUR/USD.

The first minor range is 1.2113 to 1.1836. Its 50% level at 1.1974 is resistance.

The second minor range is 1.1836 to 1.1990. Its 50% level at 1.1913 stopped the selling earlier in the session.

Short-Term Outlook

The direction of the EUR/USD into the close will be determined by trader reaction to the pair of 50% levels at 1.1913 and 1.1974. Holding inside this zone will indicate investor indecision and impending volatility.

Bearish Scenario

A sustained move under 1.1913 will indicate the presence of sellers. This could trigger an acceleration into the main bottom at 1.1836, followed by the November 23 main bottom at 1.1800.

Bullish Scenario

Overtaking 1.1974 will signal the presence of buyers. This could lead to a labored really with potential upside targets the minor top at 1.1990 and the main resistance zone at 1.2010 to 1.2074.

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