EUR/USD Mid-Session Technical Analysis for October 15, 2021
The Euro is edging higher early Friday, but trading inside yesterday’s range. This suggests investor indecision and impending volatility. Rising Treasury yields could be capping gains as well as general uncertainty ahead of the release of U.S. Retail Sales data.
At 07:44 GMT, the EUR/USD is trading 1.1608, up 0.0011 or +0.09%.
On Thursday, the EUR/USD rose after Treasury yields dipped following the release of September’s producer price index, which came in slightly lower than anticipated with wholesale prices rising 0.5% from the month prior versus the 0.6% Dow Jones estimate.
Also released Thursday, initial jobless claims for the week ended October 9 fell below 300,000 for the first time since the pandemic began. The initial claims totaled 293,000, below the 318,000 estimate.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.1524 will signal a resumption of the downtrend. The main trend will change to up on a move through 1.1755.
The minor trend is also down. A trade through 1.1640 will change the minor trend to up. This will shift momentum to the upside.
The minor range is 1.1640 to 1.1524. The EUR/USD is currently trading on the strong side of its pivot at 1.1582, making it support.
The short-term range is 1.1755 to 1.1524. Its 50% level at 1.1640 forms a resistance cluster with the minor top at the same price.
The main range is 1.1909 to 1.1524. If the minor trend changes to up then look for the buying to possibly extend into its retracement zone at 1.1717 to 1.1762.
Daily Swing Chart Technical Forecast
The direction of the EUR/USD on Friday will be determined by trader reaction to 1.1582.
A sustained move over 1.1582 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into 1.1640. Taking out this level could trigger an acceleration to the upside with 1.1717 the next target.
A sustained move under 1.1582 will signal the presence of sellers. This could trigger a move into 1.1574. If this level fails then look for the selling to extend into 1.1524.
For a look at all of today’s economic events, check out our economic calendar.