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EUR/USD Mid-Session Technical Analysis for April 6, 2021

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James Hyerczyk
·3 min read
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The Euro is inching lower in a muted trade on Tuesday after giving back its earlier small gains as the U.S. Dollar rebounded as short-term optimism about the outlook for the U.S. economy prompted investors to regroup following a sell-off the previous session.

The common currency has enjoyed a bit of a technical bounce since the new month started last Thursday as government records showed hedge funds cut their long positions on the currency, despite and a blowout U.S. jobs report on Friday and a robust U.S. ISM Non-Manufacturing PMI report on Monday.

At 10:50 GMT, the EUR/USD is trading 1.1808, down 0.0005 or -0.04%.


Euro Zone Investor Morale Rises in April to Highest Since August 2018

Reuters is reporting that an investor morale index in the Euro Zone rose in April to the highest level since August 2018, driven by an improved view of the current situation, a survey showed on Tuesday.

In other news, unemployment in the Euro Zone was unchanged in February compared to an upwardly revised January reading, as European furlough schemes limited the impact of the second wave of the pandemic on jobs.

Finally, the focus this week will be on the European Central Bank, which is expected to release monthly data on its conventional asset purchases and the bi-monthly breakdown of its pandemic emergency bond purchases on Wednesday, followed by the minutes for its March meeting on Thursday.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. The main trend will change to up on a move through 1.1989. A move through the last main bottom at 1.1704 will signal a resumption of the downtrend.

The minor trend is up. The minor trend turned up on Monday, shifting momentum to the upside. A trade through 1.1738 will change the minor trend to down.

The new minor range is 1.1704 to 1.1822. Its 50% level at 1.1763 is potential support.

The short-term range is 1.1989 to 1.1704. Its 50% level at 1.1847 is the first potential upside target.

The main range is 1.2243 to 1.1704. Its retracement zone at 1.1888 to 1.1976 is the primary upside target. Since the main trend is down, sellers are likely to show up on a test of this area.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD is likely to be determined by trader reaction to the pivot at 1.1763.

Bullish Scenario

A sustained move over 1.1763 will indicate the presence of buyers. If this is able to generate enough upside momentum then look for a labored really into potential resistance at 1.1847 and 1.1888 to 1.1976.

Bearish Scenario

A sustained move under 1.1763 will signal the presence of sellers. This is followed by the minor bottom at 1.1738. Taking out this level could trigger a further break into the main bottom at 1.1704.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire