The Euro is trading lower against the U.S. Dollar after the news that Bundesbank President Jens Weidmann, a relentless critic of the European Central Bank’s ultra-easy monetary policy, will quit his post. Sellers are also likely reacting to a report that showed energy and services boosted Euro Zone inflation as expected in September.
At 12:06 GMT, the EUR/USD is trading 1.1622, down 0.0010 or -0.09%.
More expensive energy and services boosted Euro Zone inflation as expected in September, data showed on Wednesday, with core inflation also higher.
The European Union’s statistics office Eurostat said consumer prices in the 19 countries using the Euro rose 0.5% month-on-month in September for a 3.4% year-on-year rise, as earlier estimated by Eurostat.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart, however, momentum is trending lower. A trade through $1755 will change the main trend to up. A move through 1.1524 will signal a resumption of the downtrend.
The minor trend is up. This is controlling the momentum. A trade through 1.1669 will indicate the buying is getting stronger. A move through 1.1572 will change the minor trend to down.
The short-term range is 1.1755 to 1.1524. Its 50% level at 1.1640 is resistance.
The main range is 1.1909 to 1.1524. If buyers can take out 1.1669 then look for the rally to extend into its retracement zone at 1.1717 to 1.1762.
On the downside, potential support is a pair of minor pivots at 1.1621 and 1.1597.
Daily Swing Chart Technical Forecast
The direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to 1.1640 and 1.1621.
A sustained move over 1.1640 will indicate the presence of buyers. This could trigger a retest of 1.1669. Taking out this level could generate the momentum needed to extend into the retracement zone at 1.1717 to 1.1762.
A sustained move under 1.1621 will signal the presence of sellers. This could lead to a quick test of the pivot at 1.1597.
If 1.1597 fails as support then look for the selling to extend into the minor bottom at 1.1572. Taking out this level will indicate the selling pressure is getting stronger with 1.1524 the next major downside target.