EUR/USD MId-Session Technical Analysis for October 8, 2021

The Euro is trading higher against the U.S. Dollar on Friday as investors await the release of the late U.S. employment data report due at 1230 GMT, which a Reuters poll expects to show U.S. hiring rising by 500,000 workers in September, more than twice the level in August.

At 11:55 GMT, the EUR/USD is trading 1.1559, down 0.0006 or -0.05%.

As Federal Reserve Chairman Jerome Powell said at the bank’s latest policy meeting that a “reasonably good” employment report would meet the bank’s threshold for reducing the purchases, analysts expect a figure near consensus to pave the way for a tapering announcement in November.

In other news, Euro Zone bond yields edged up on Friday as the temporary raising of the U.S. debt ceiling eased fears of a U.S. Treasury default. German bond yields, which are closely correlated to U.S. Treasuries, and other Euro Zone bond yields rose on Friday, catching up with a rise in Treasury yields following the debt ceiling news on Thursday, which boosted risk appetite.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1529 will signal a resumption of the downtrend. A move through 1.1755 will change the main trend to up.

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 first minor range is 1.1640 to 1.1529. Its 50% level at 1.1585 is potential resistance.

The second minor range is 1.1755 to 1.1529. Its 50% level at 1.1642 combines with the minor top to form a potential resistance cluster.

The short-term range is 1.1909 to 1.1529. If the minor trend changes to up then its retracement zone at 1.1719 to 1.1764 will become the primary upside target.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Friday is likely to be determined by trader reaction to 1.1565.

Bearish Scenario

A sustained move under 1.1565 will indicate the presence of sellers. The first downside target is 1.1529. Taking out this level could trigger an acceleration to the downside with the July 16, 2020 main bottom at 1.1371 the next near-term target.

Bullish Scenario

A sustained move over 1.1565 will signal the presence of buyers. If this move generates enough upside momentum then look for a surge into the pivot at 1.1585.

Overtaking the pivot at 1.1585 could extend the rally into the resistance cluster at 1.1640 – 1.1642. Taking out 1.1642 will indicate the buying is getting stronger with the next target zone coming in at 1.1719 to 1.1764.