EUR/USD Mid-Session Technical Analysis for November 4, 2021

The Euro is trading lower at the mid-session as the U.S. Dollar rebounded from its post-Fed dip on Thursday. The dollar retreated from its highs on Wednesday after Fed Chairman Jerome Powell said he was in no rush to raise interest rates. The greenback is up against the Euro today as investors took a more balanced view of Fed monetary policy and the overall picture painted by fresh upbeat data for the U.S. services industry.

At 15:09 GMT, the EUR/USD is trading 1.1548, down 0.0063 or -0.55%.

The Euro remained under pressure against the dollar with the European Central Bank (ECB) seemingly far behind the Fed in tightening. ECB President Christine Lagarde on Wednesday pushed back on market bets for a rate hike as soon as next October and said it was very unlikely such a move would occur in 2022.

In economic news, Euro Zone producer prices jumped in September more than expected, driven by skyrocketing energy costs, recording their highest increase on record in a new sign of strong inflationary pressures in the bloc, public data showed on Thursday.

In the United States, a measure of U.S. services industry activity surged to a record high in October. Additionally, the U.S. unemployment picture improved again last week, with initial filings for unemployment insurance falling to another pandemic-era low.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1524 will reaffirm the downtrend. A move through 1.1692 will change the main trend to up.

On the upside, resistance comes in at 1.1608, followed by additional resistance at 1.1640.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD into the close on Thursday will be determined by trader reaction to 1.1576.

Bearish Scenario

A sustained move under 1.1576 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into 1.1535, followed closely by 1.1524. The latter is a potential trigger point for an acceleration into the July 16, 2020 main bottom at 1.1371.

Bullish Scenario

A sustained move over 1.1576 will signal the presence of buyers. If this generates enough upside momentum then look for a surge into 1.1608. Overtaking this level will indicate the buying is getting stronger with 1.1640 the next likely target.