EUR/USD Mid-Session Technical Analysis for April 21, 2017

The EUR/USD is trading lower at the mid-session. General concerns over the French presidential election on Sunday, April 23 may be putting pressure on the Forex pair. Increased demand for higher risk assets, a stronger dollar and rising U.S. Treasury yields may also be behind the weakness in the Euro.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.0601 will change the main trend to down. This could trigger a further break into other main bottoms at 1.0569 and 1.0524.

A trade through 1.0777 will signal a resumption of the uptrend. This is followed by the next main top at 1.0906.

The EUR/USD is also being jammed by a series of retracement levels. The levels that provided resistance on Thursday came in at 1.0715, 1.0738 and 1.0777. The last level actually stopped the market on its high. Overcoming 1.0777 could trigger a move into the next level at 1.0819.

On the downside, the first target is a Fib level at 1.0670.

Forecast

Based on the current price at 1.0695, the next downside target is a support cluster at 1.0681 to 1.0679. This is followed closely by a Fib level at 1.0670.

The Fib level at 1.0670 is the trigger point for a break into the next uptrending angle at 1.0641. This is the last major uptrending angle before the main bottom at 1.0601. This is followed by a major long-term uptrending angle at 1.0602, followed by the main bottom at 1.0569.

If the angle at 1.0681 holds as support then we could see a retest of the pair of 50% levels at 1.0715 and 1.0738. This is followed by 1.0777 and a downtrending angle at 1.0811.

The current chart pattern suggests we’re likely to see a choppy, two-sided trade today unless the main bottom at 1.0601 or the minor top at 1.0777 are taken out.