EUR/USD Mid-Session Technical Analysis for September 24, 2021

The Euro is hovering slightly below a one-week high on Friday as investors moved back into the U.S. Dollar amid renewed concerns over the finances of property developer China Evergrande Group.

Today’s move follows a strong rebound rally by the common currency on Thursday that was fueled as the safe-haven dollar fell after Beijing injected new cash into the financial system, when Evergrande announced it would make interest payments on an onshore bond.

However, investors initiated a new round of safe-haven buying after some holders of its offshore bonds said they had not received coupon payments by a Thursday deadline. Traders also expressed concerns over additional dollar bond interest payments due next week.

At 11:09 GMT, the EUR/USD is trading 1.1734, down 0.0006 or -0.05%.


Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1755 will change the main trend to up. A move through 1.1683 will signal a resumption of the downtrend.

The minor range is 1.1755 to 1.1683. The EUR/USD is currently holding slightly above it pivot at 1.1719, making it new support.

The short-term range is 1.1664 to 1.1909. Its retracement zone at 1.1758 to 1.1787 is potential resistance.

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 the pivot at 1.1719.

Bullish Scenario

A sustained move over 1.1719 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into 1.1755 – 1.1758. Overtaking this area could extend the rally into 1.1787.

Bearish Scenario

A sustained move under 1.1719 will signal the presence of sellers. This could trigger an acceleration to the downside with 1.1683 a potential target, followed by the August 20 main bottom at 1.1664.

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.