EUR/USD Mid-Session Technical Analysis for November 29, 2021

The Euro is trading lower on Monday, but inside the previous session’s wide range as traders continue to assess the impact of the newly detected coronavirus variant. The price action suggests investor indecision and impending volatility. It also indicates that investors have dropped out of panic mode following Friday’s session as U.S. bank and institutional traders return following last week’s extended U.S. holiday.

At 13:34 GMT, the EUR/USD is trading 1.1279, down 0.0043 or -0.38%.

The financial markets have calmed a little since Friday’s heightened volatility and investors are now scrutinizing scientists’ assessment of the efficacy of vaccines against the new variant and trying to assess how potential measures to contain its spread could affect economies and policy.

One lingering issue that could be the source of near-term volatility is that we may have to wait two weeks to find out the efficacy of existing vaccines against the virus.


Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1186 will signal a resumption of the downtrend. A move through 1.1608 will change the main trend to up.

The minor trend is also down. A trade through 1.1374 will change the minor trend to up. This will also shift momentum to the upside.

Early Monday, the EUR/USD is straddling a long-term Fibonacci level at 1.1291. Trader reaction to this level could set this week’s tone.

Additional resistance levels are a series of 50% levels at 1.1325, 1.1397 and 1.1439.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Monday is likely to be determined by trader reaction to 1.1291.

Bearish Scenario

A sustained move under 1.1291 will indicate the presence of sellers. The first downside target is a minor pivot at 1.1258. If this level fails as support then look for the selling to possibly extend into 1.1186, followed closely by 1.1168.

Bullish Scenario

A sustained move over 1.1291 will signal the presence of buyers. This could lead to a quick rally into 1.1325 to 1.1330.

Taking out 1.1330 will indicate the buying is getting stronger with new targets coming in at 1.1374 and 1.1397.

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

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.