EUR/USD Mid-Session Technical Analysis for May 24, 2021

The Euro is trading higher on Monday, hovering just under a three-month high reached last week. Helping to underpin the single currency are increasing bets on a robust global economic recovery. Perhaps capping gains are concerns that the Fed may turn slightly more hawkish at its next monetary policy meeting on June 15-16.

At 15:00 GMT, the EUR/USD is trading 1.2222, up 0.0041 or +0.34%.

There were no major U.S. economic releases on Monday. Additionally, yields on benchmark 10-year U.S. Treasury notes were steady around 1.61% on Monday morning, putting a lid on volatility.

The single currency has gained around 4% on the greenback since March as Europe has moved to catch up with the United States in vaccinating its people and reviving its economy.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.2245 will signal a resumption of the uptrend. A move through 1.2052 will change the main trend to down.

The minor range is 1.2052 to 1.2245. Its 50% level at 1.2149 is potential support.

The main support zone remains 1.2037 to 1.1973. This area is controlling the near-term direction of the EUR/USD.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD into the close on Monday will likely be determined by trader reaction to the pivot at 1.2149.

Bullish Scenario

A sustained move over 1.2149 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the last week’s high at 1.2245. Overtaking this level could trigger an acceleration to the upside with the January 6 main top at 1.2349 the next likely upside target.

Bearish Scenario

The inability to overcome 1.2149 will signal the presence of sellers. If this move creates enough downside momentum to take out 1.2149 then look out to the downside since the daily chart indicates there is no major support until the main bottom at 1.2052 and the main Fibonacci level at 1.2037.