Advertisement
Advertisement

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

By:
James Hyerczyk
Published: Nov 23, 2021, 14:18 UTC

The direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to 1.1236.

EUR/USD

In this article:

The Euro is inching higher against the U.S. Dollar on Tuesday as traders book some profits and square positions ahead of Wednesday’s Federal Reserve minutes and the start of what could amount to be a two-day U.S. holiday.

The fundamentals didn’t change overnight either. The big picture is still bearish due to the divergence between the European Central Bank and the U.S. Federal Reserve. Basically, the ECB is dovish while the Fed is hawkish.

At 14:01 GMT, the EUR/USD is trading 1.1251, up 0.0014 or +0.13%.

In economic news, Euro Zone business growth unexpectedly accelerated this month but another wave of coronavirus infections and new restrictions, alongside price pressures, are likely to put a dent in December’s expansion, a survey showed on Tuesday.

IHS Markit’s Flash Composite Purchasing Managers’ Index, a good indicator of overall economic health, jumped to 55.8 in November from 54.2 in October. That exceeded all forecasts in a Reuters poll which had predicted a drop to 53.2.

At 14:45, the U.S. will release reports on Flash Manufacturing PMI and Flash Services PMI. Both are expected to show modest gains.

Daily EUR/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1226 will signal a resumption of the downtrend. A move through 1.1608 will change the main trend to up.

The minor trend is also down. A trade through 1.1374 will change the minor trend to up. This will shift momentum to the upside.

The nearest support is the July 3, 2020 main bottom at 1.1219 and the June 19, 2020 main bottom at 1.1168.

On the upside, resistance comes in at 1.1291 and 1.1300, followed by 1.1345.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to 1.1236.

Bullish Scenario

A sustained move over 1.1236 will indicate the presence of buyers. If this creates enough upside momentum then look for a surge into 1.1291 – 1.1300.

Sellers could come in on the first test of 1.1291 – 1.1300. However, 1.1300 is also a potential trigger point for an acceleration to the upside with 1.1345 the next major target.

Bearish Scenario

A sustained move under 1.1236 will signal the presence of sellers. This could lead to a retest of 1.1226, followed closely by 1.1219. This level is a potential trigger point for an acceleration into 1.1168.

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.

Did you find this article useful?

Advertisement