EUR/USD Mid-Session Technical Analysis for September 27, 2021
The Euro is trading lower against the U.S. Dollar on Monday as U.S. Treasury yields climbed to their highest level since the start of July in anticipation of tighter U.S. monetary policy after the Federal Reserve announced last week that it may start tapering stimulus as soon as November and flagged interest rate increases may follow sooner than expected.
At 11:52 GMT, the EUR/USD is trading 1.1693, down 0.0029 or -0.24%.
The weakness in the common currency could also be a reaction to Germany’s federal election which reduced the chances of a left-wing coalition gaining power.
Later today, investors will get the opportunity to react to the latest data on U.S. Durable Goods, but the most likely market driver will be slew of FOMC speakers.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.1755 will change the main trend to up. A move through 1.1683 will signal a resumption of the downtrend.
The minor range is 1.1755 to 1.1683. The EUR/USD is currently trading on the weak side of its pivot at 1.1719.
The main resistance is the retracement zone at 1.1758 to 1.1787.
Daily Swing Chart Technical Forecast
The direction of the EUR/USD on Monday is likely to be determined by trader reaction to 1.1719.
A sustained move under 1.1719 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into last week’s low at 1.1683. If this level fails then look for a possible test of the August 20 main bottom at 1.1664.
Taking out 1.1664 will reaffirm the downtrend. This could trigger an acceleration to the downside with the November 4, 2020 main bottom at 1.1603 the next key downside target.
Overtaking and sustaining a move over the pivot at 1.1719 will signal the presence of buyers. If this move creates enough upside momentum then look for a possible surge into the resistance cluster at 1.1755 to 1.1758.