EUR / USD mid-session technical analysis for August 3, 2021
The euro is trading flat against the US dollar for a second session on Tuesday as traders continue to position ahead of Friday’s major US nonfarm wage report. With Federal Reserve members and President Jerome Powell putting a clear focus on the labor market in last week’s monetary policy statement and post-meeting press conference, the wages report could set the tone in the Forex market for the next few months.
At 11:01 am GMT, EUR / USD is trading at 1.1887, up 0.0015 or + 0.13%.
Some traders believe the Fed will make an announcement to cut its bond purchases at the central bankers summit in Jackson Hole, Wyoming, in mid-August. Others believe the Fed will wait for its next meeting on September 21-22 with some Fed members saying they want to see September’s labor market numbers before making a decision.
In other news, the euro showed little reaction to a July Manufacturing Purchasing Managers Index (PMI) reading of 62.8, slightly above the “flash” number of. 62.6.
Technical analysis of the daily swing chart
The main trend is upward on the daily swing chart. A trade up to 1.1909 will signal a resumption of the uptrend. A move through 1.1752 will change the main trend down.
Momentum will go down on a trade to 1.1851. This move will confirm the potentially bearish top of Friday’s closing price reversal.
The short-term range is 1.1975 to 1.1752. EUR / USD is currently testing its retracement area between 1.1864 and 1.1890.
The minor range is 1.1752 to 1.1909. Its retracement zone at 1.1830 to 1.1812 is a potential target on the downside and a support zone.
Technical forecasts of the daily swing chart
The direction of EUR / USD on Tuesday will likely be determined by the reaction of traders at 1.1864.
A sustained move above 1.1864 will indicate the presence of buyers. The first bullish target is 1.1890, followed by 1.1909. The latter is a potential trigger point for upward acceleration.
A sustained move below 1.1864 will signal the presence of sellers. This could trigger a break out in the minor retracement area between 1.1830 and 1.1812. Since the main trend is up, buyers are likely to test this area.