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EUR/USD Mid-Session Technical Analysis for March 23, 2021

By:
James Hyerczyk
Published: Mar 23, 2021, 11:01 UTC

The direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to 1.1913.

EUR/USD Mid-Session Technical Analysis for March 23, 2021

In this article:

The Euro is trading lower but steady against the U.S. Dollar on Tuesday as investors looked to U.S. policymakers for clues on whether they may seek to slow rising yields.

In the Euro Zone, Germany is extending its lockdown until April 18 and calling on citizens to stay home over Easter and Chancellor Angela Merkel warned:  “we are now basically in a new pandemic,” as more transmissible virus variants sweep the continent.

At 09:54 GMT, the EUR/USD is trading 1.1894, down 0.0040 or -0.34%.

Treasury yields are falling following Fed Chair Powell’s comments on the economy, released on Monday, ahead of his testimony later today. However, the drop in yields is not helping the Euro, which is still under pressure. The dollar is also rising against most major currencies, which suggests safe-haven buying tied to the currency crisis in Turkey.

Yields are trading lower on Tuesday morning, following prepared comments from Federal Reserve Chairman Jerome Powell for a congressional hearing, in which he warned the economic recovery was “far from complete.”

Powell and Treasury Secretary Janet Yellen are due to make their first joint appearance in front of the U.S. House Committee on Financial Services at 16:00 GMT on Tuesday, to discuss their response to the coronavirus pandemic.

Daily EUR/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1874 will signal a resumption of the downtrend. The main trend will change to up on a move through 1.1989.

The minor range is 1.1836 to 1.1990. The EUR/USD is currently straddling its 50% level at 1.1913.

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

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

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to 1.1913.

Bearish Scenario

A sustained move under 1.1913 will indicate the presence of sellers. Taking out 1.1874 could trigger an acceleration into 1.1836. If this level fails then look for the selling to possibly extend into the November 23, 2020 main bottom at 1.1800.

Bullish Scenario

A sustained move over 1.1913 will signal the presence of buyers. This is a potential trigger point for an acceleration into 1.1974, followed by a pair of main tops at 1.1989 and 1.1990.

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

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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