EUR/USD Mid-Session Technical Analysis for November 8, 2021

The Euro is edging higher against the U.S. Dollar on Monday after confirming the previous session’s minor reversal bottom. Despite the small gain, the trade looks a little tentative with light short-covering driving the price action instead of new buying. The price action suggests investors are still weighing the markets’ call for rate hikes despite several major central banks calling for patience in the face of rising inflation.

At 13:03 GMT, the EUR/USD is trading 1.1579, up 0.0012 or +0.10%.

In economic news, investor morale in the Euro Zone rose in November for the first time since July as investors expected supply bottlenecks and higher prices to hold back the economy only temporarily, a survey showed on Monday.

Sentix’s index for the Euro Zone rose to 18.3 from 16.9 in October. A Reuters poll had pointed to a November reading of 15.5.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has shifted to the upside with today’s confirmation of Friday’s closing price reversal bottom.

A trade through 1.1513 will negate the closing price reversal bottom and signal a resumption of the downtrend. A move through 1.1692 will change the main trend to up.

The minor range is 1.1692 to 1.1513. Its 50% level or pivot at 1.1603 is the first upside target.

The second minor range is 1.1755 to 1.1513. Its pivot at 1.1634 is the second potential upside target and resistance.

The short-term range is 1.1909 to 1.1513. If the main trend changes to up then look for the buying to possibly extend into 1.1711 to 1.1758.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD into the close on Monday is likely to be determined by trader reaction to 1.1573.

Bullish Scenario

A sustained move over 1.1573 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into 1.1603. Sellers could come in on the first test of this level.

Overcoming 1.1603 will indicate the buying is getting stronger with 1.1634 the next upside target. This is a potential trigger point for an acceleration into 1.1692.

Bearish Scenario

A sustained move under 1.1573 won’t be bearish per se. It may just indicate the buyers need more time to form a solid bottom.

But if 1.1513 is taken out with strong selling, we could see an acceleration to the downside with the July 16, 2020 main bottom at 1.1371 the next likely target.