The Euro is trading lower against the U.S. Dollar for a fourth straight session as rising U.S. Treasury yields make the greenback a more attractive asset. In other news, Euro Zone industrial production rose in June, official data showed on Wednesday, but the rebound after coronavirus-induced record declines in March and April was below expectations for a second straight month and slowed from May.
At 11:43 GMT, the EUR/USD is trading 1.1718, down 0.0022 or -0.19%.
Manufacturing output in the 19-country currency bloc rose by 9.1% in June from May, the European Union statistics office Eurostat said, after it had increased by 12.3% in May on the month.
Meanwhile, in the U.S., investors are bracing for a massive U.S. Treasury auction of a record $38 billion of 10-year notes on Wednesday, along with $25 billion of 105-day bills and $30 billion of 154-day bills. In anticipation of the huge supply hitting the market, Treasury yields have soared over the past week, driving up interest in the U.S. Dollar.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.1916 will signal a resumption of the uptrend. The main trend will change to down on a trade through 1.1185.
The minor trend is also up. It will change to down on a move through 1.1696. This will shift momentum to the downside.
The minor range is 1.1696 to 1.1916. Its 50% level at 1.1806 is the nearest resistance and potential trigger point for an acceleration to the upside.
A second minor range comes in at 1.1371 to 1.1916. If the minor trend changes to down then its retracement zone at 1.1644 to 1.1579 will become the primary downside target. Since the main trend is up, buyers could come in on a test of this area.
Daily Swing Chart Technical Forecast
There is no specific trigger point on the charts today for a breakout in either direction.
If counter-trend traders continue to have the upper hand then look for the selling to possibly extend into 1.1696, followed by the 50% level at 1.1644. The sell-off could expand further into 1.1579 to 1.1555 if 1.1644 is taken out on high volume.
If trend traders regain control and generate enough upside momentum with the move then look for the rally to possibly extend into the minor pivot at 1.1806.
This article was originally posted on FX Empire
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