EUR/USD Mid-Session Technical Analysis for March 26, 2021

The Euro is trading higher against the U.S. Dollar on Friday, recovering some of its heavy losses from the day before. Helping to cap gains is optimism over the state of the U.S. economy and the rollout of coronavirus vaccines. Underpinning the market is today’s U.S. inflation data report that showed tamed price pressures.

At 13:38 GMT, the EUR/USD is trading 1.1783, up 0.0017 or +0.15%.

On the inflation front, the U.S. core personal consumption expenditure price index, which strips out volatile food and energy prices, rose 0.1% month over month, matching expectations from economists polled by Dow Jones. Year over year, the gauge climbed 1.4%, slightly lower than a 1.5% estimate.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, dropped 1.0% last month after rebounding 3.4% in January, the Commerce Department said on Friday.

Personal income tumbled 7.1% after surging 10.1% in January. Economists polled by Reuters had forecast consumer spending decreasing 0.7% in February and income declining 7.3%.

The 10-year U.S. Treasury yield is rising but off its high as the latest inflation data showed tamed price pressures.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1762 will signal a resumption of the downtrend. Taking out 1.1745 will reaffirm the downtrend.

A trade through 1.1989 will change the main trend to up. On Monday, the EUR/USD will enter the window of time for a closing price reversal bottom.

The minor trend is also down. A trade through 1.1947 will change the minor trend to up and shift momentum to the upside.

Daily Swing Chart Technical Forecast

Momentum is the key today. A trade through 1.1762 will signal a continuation of the downside momentum. A move through 1.1828 will be the first sign that momentum is shifting to the upside.

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