EUR/USD Mid-Session Technical Analysis for September 15, 2021

The Euro is trading slightly higher against the U.S. Dollar on Wednesday as traders continued to react to yesterday’s softer-than-expected U.S. inflation report that eased short-term expectations about tapering of asset purchases from the Federal Reserve.

The common currency started the session firm, but gave back some of those gains after U.S. import prices fell unexpectedly in August and a higher-than-expected reading for the New York Federal Reserve’s business survey.

At 14:25 GMT, the EUR/USD is trading 1.1821, up 0.0016 or +0.14%.

In economic news, Euro Zone industrial production was stronger than expected in July, data showed on Wednesday, thanks to rising output of capital and non-durable consumer goods.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 1.1664 will change the main trend to down. A move through 1.1909 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the momentum. A trade through 1.1846 will change the minor trend to up. A move through 1.1770 will indicate the selling pressure is getting stronger.

The main range is 1.1603 to 1.1975. Its retracement zone at 1.1820 to 1.1856 is potential resistance. Inside this range is the pivot at 1.1840.

The short-term range is 1.1664 to 1.1909. Its retracement zone at 1.1787 to 1.1758 is new support. This zone stopped the selling at 1.1770 on Monday.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to 1.1820.

Bullish Scenario

A sustained move over 1.1820 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible surge into 1.1840, 1.1846, 1.1851 and 1.1856. The latter is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 1.1820 will signal the presence of sellers. If this generates enough downside momentum then look for a retest of 1.1787, 1.1770 and 1.1758.