EUR/USD Mid-Session Technical Analysis for March 22, 2021

The Euro is edging higher on Monday after the fallout from Turkey’s latest currency debacle appeared to be contained as the single-currency recovered from President Tayyip Erdogan’s shock replacing of a hawkish central bank governor with a critic of high interest rates.

At 13:40 GMT, the EUR/USD is trading 1.1921, up 0.0016 or +0.14%.

Turkey’s lira fell dramatically on Monday morning after President Recep Tayyip Erdogan fired the country’s central bank chief – the third to be fired in two years –sending shockwaves through the investor community.

The news sent investors into the safety of the U.S. Dollar, pressuring the Euro. But as the turmoil eased, investors sold their safe harbor positions in the dollar, helping to boost the Euro. Nonetheless, it still remains a volatile situation.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1990 will change the main trend to up. A move through the intraday low at 1.1874 will signal a resumption of the downtrend.

The minor range is 1.1836 to 1.1990. The EUR/USD is currently straddling its pivot at 1.1913.

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

The key retracement zone resistance is 1.2010 to 1.2074. This zone is controlling the near-term direction of the Euro.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD into the close is likely to be determined by trader reaction to the minor pivot at 1.1913.

Bullish Scenario

A sustained move over 1.1913 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into 1.1974. This is followed by the resistance cluster at 1.1989 – 1.1990, followed by 1.2010.

Bearish Scenario

A sustained move under 1.1913 will signal the presence of sellers. The first downside target is 1.1874. Taking out this level could trigger an acceleration into the main bottom at 1.1836, followed by the November 23, 2020 main bottom at 1.1800.

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