EUR/USD Mid-Session Technical Analysis for October 21, 2021
The Euro is trading lower on Thursday after the European Central Bank’s economic outlook suggested it won’t be able to raise rates for years to come, given the correlation between global bond markets, rate increases in the U.K., U.S. and other major countries have also pushed Euro Zone rates higher and money markets have started to price a full ECB rate hike next year.
At 14:30 GMT, the EUR/USD is trading 1.1644, down 0.0007 or -0.06%.
The U.S. Dollar also strengthened against the Euro on some light safe-haven buying as risk sentiment soured. The greenback also moved higher as the Federal Reserve moved closer to tapering in November.
In economic news, the number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market, though a shortage of workers could keep the pace of hiring moderate in October.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart, however, momentum has shifted to the upside.
A trade through 1.1755 will change the main trend to up. A move through 1.1524 will signal a resumption of the downtrend.
The minor trend is up. This is controlling the momentum. A trade through 1.1669 will indicate the buying is getting stronger. A trade through 1.1572 will change the minor trend to down.
The short-term range is 1.1755 to 1.1524. The EUR/USD is currently straddling its pivot at 1.1640.
On the downside, potential pivot support is 1.1621 and 1.1597.
The main range is 1.1909 to 1.1524. If the minor uptrend resumes then its retracement zone at 1.1717 to 1.1762 will become the next upside target.
Daily Swing Chart Technical Forecast
The direction of the EUR/USD into the close on Thursday is likely to be determined by trader reaction to 1.1640.
A sustained move over 1.1640 will indicate the presence of buyers. The first potential upside target is 1.1669. Taking out this level could trigger an acceleration into the short-term 50% level at 1.1717.
A sustained move under 1.1640 will signal the presence of sellers. This could trigger a labored break into the pair of pivots at 1.1621 and 1.1597.
If 1.1597 fails as support then look for the selling to extend into the minor bottom at 1.1572.