EUR/USD Mid-Session Update for November 9, 2021

The Euro is trading flat against the U.S. Dollar on Tuesday as traders waited for U.S. consumer inflation (CPI) data due to be released on Wednesday. Traders are hoping the data combined with more speeches from central bank governors will offer some clues on the direction of interest rates.

At 14:44 GMT, the EUR/USD is trading 1.1588, unchanged.

After central banks sought to push back against rising rate hike expectations last week, sending the Euro tumbling, the common currency has settled back into another spell of low volatility, but this could be just the calm before the storm. We will get better clues as to the direction of the U.S. Dollar once the CPI data is released.

In economic news, U.S. producer prices increased solidly in October, driven by surging costs for gasoline and motor vehicle retailing, suggesting that high inflation could persist for a while amid tight supply chains related to the pandemic.

The U.S. producer price index (PPI) for final demand rose 0.6% last month after climbing 0.5% in September, the Labor Department said on Tuesday. In the 12 months through October, the PPI increased 8.6% after a similar gain in September.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1513 will signal a resumption of the downtrend. A move through 1.1692 will change the main trend to up.

The minor range is 1.1692 to 1.1513. The EUR/USD is currently testing its 50% level at 1.1603.

The short-term range is 1.1755 to 1.1513. Its 50% level at 1.1634 is another potential upside target.

The main range is 1.1909 to 1.1513. Its retracement zone at 1.1711 to 1.1758 is controlling the near-term direction of the Forex pair.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD into the close on Tuesday will be determined by trader reaction to 1.1603.

Bullish Scenario

A sustained move over 1.1603 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to continue into 1.1634.

Sellers could come in on the first test of 1.1634, but overcoming this level could trigger an acceleration into the main top at 1.1692.

Bearish Scenario

A sustained move under 1.1603 will signal the presence of sellers. This could trigger a quick break into 1.1575.

If this market is building a support base then buyers should start to come in on a pullback into 1.1575. If this price fails as support then look for the selling to extend into 1.1513.