Yahoo Finanza EUR/USD Mid-Session Technical Analysis for March 8, 2021
The Euro is testing a three-month low on Monday after the U.S. Senate passage of a bumper stimulus bill sparked another sell-off in the U.S. Treasury bond market. The single-currency also fell despite a report that showed investor morale improved to its highest level in a year.
At 11:32 GMT, the EUR/USD is trading 1.1879, down 0.0033 or -0.28%.
Over the weekend, the Senate passed a $1.9 trillion COVID-19 relief plan, a day after a stunning U.S. jobs report sent the greenback to its highest level since November 2020. The yield on the benchmark U.S. 10-year Treasury moved closer to a one-year high reached on Friday on the news. Higher yields are making the U.S. Dollar a more attractive asset.
Meanwhile, an investor morale index in the Euro Zone jumped to its highest reading in over a year in March, driven by an improved view of the current situation, a survey showed on Monday.
Sentix’s index for the Euro Zone rose to 5.0 from -0.2 in February, the highest since February 2020. A Reuters poll had pointed to a reading of 1.9.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The downtrend resumed earlier today when sellers took out Friday’s low. The main trend will be reaffirmed on a trade through the November 23, 2020 main bottom at 1.1800.
The main trend will change to up on a trade through 1.2243. This is highly unlikely but the EUR/USD is down seven days from its last main top, which puts it inside the window of time for a potentially bullish closing price reversal bottom.
The minor trend is also down. A trade through 1.2113 will change the minor trend to up. This will shift momentum to the upside.
The main range is 1.2349 to 1.1800. The EUR/USD is currently trading on the weak side of its retracement zone at 1.2010 to 1.2074. This zone is new resistance.
Daily Swing Chart Technical Forecast
Given the prolonged move down in terms of price and time, the direction of the EUR/USD on Monday is likely to be determined by trader reaction to Friday’s close at 1.1912.
Bearish Scenario
A sustained move under 1.1912 will indicate the presence of sellers. If this continues to generate enough downside momentum then look for the selling to possibly extend into the main bottom at 1.1800 over the short-run.
Bullish Scenario
A sustained move over 1.1912 will signal the presence of buyers. This won’t change the trend to up, but it will indicate a shift in momentum. If strong enough then look for a move towards the main Fibonacci level at 1.2010.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
