The Euro is trading nearly flat against the U.S. Dollar on Friday, pressured by fears that the Delta coronavirus variant could delay the global economic recovery. Meanwhile, the single currency is garnering some support from a slight dip in U.S. Treasury yields.
Looking at the bigger picture, however, the Euro has been pressured and the greenback boosted since Wednesday by expectations the Federal Reserve could still start to taper stimulus this year, even with COVID-19 infections surging this month in the United States.
At 10:34 GMT, the EUR/USD is trading 1.1682, up 0.0004 or +0.04%. It’s down 0.94% this week, the most since mid-June.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.1666 will signal a resumption of the downtrend. A move through 1.1805 will change the main trend to up. Today’s inside move indicates investor indecision and impending volatility.
The minor range is 1.1805 to 1.1666. Its retracement zone at 1.1736 to 1.1752 is the next potential upside target and resistance area.
Daily Swing Chart Technical Forecast
The early price action suggests the direction of the EUR/USD on Friday is likely to be determined by trader reaction to 1.1678.
A sustained move under 1.1678 will indicate the presence of sellers. The first downside target is yesterday’s low at 1.1666. This is a potential trigger point for an acceleration to the downside with the next major downside target the November 4 main bottom at 1.1603.
A sustained move over 1.1678 will signal the presence of buyers. The first upside target is the former bottom at 1.1704. Overtaking this level could trigger further short-covering with the next likely upside target coming in at 1.1736 to 1.1752.
Since the main trend is down, sellers are likely to come in on a test of 1.1736 to 1.1752.