Technical Analysis

EUR/USD Analysis – September 14, 2021

By LonghornFX Technical Analysis
Sep 14, 20213 min

Pivot Point Resistance at 1.1823

After hitting a top of $1.1818 and a low of $1.1769, the EUR/USD pair was settled at $1.1808. On Monday, the EUR/USD currency pair fell for the third straight session, extending its losses to its lowest level since August 27. Despite the weakening of the US dollar, the EUR/USD currency pair fell on Monday due to recent statements by a German member of the European Central Bank.

Isabel Schnabel asserted that inflation would begin to fall as early as next year, putting pressure on the single currency Euro, which resulted in a loss in the EUR/USD currency pair. The US Dollar Index, which measures the greenback's value against a basket of six major currencies, gained to 92.89 in early trading hours on Monday, supporting the greenback and putting pressure on the EUR/USD pair for the day.

However, the greenback came under pressure during American trading hours and sank to 92.6%, giving up its gains, capping additional losses in the EUR/USD pair. On the data front, the German WPI in August fell to 0.5 percent, versus a forecast of 0.8 percent, weighing on the single currency Euro and adding to the loss in the EUR/USD pair at 11:00 GMT. The Italian Quarterly Unemployment Rate fell to 9.8% at 13:00 GMT, versus an estimate of 10.1 percent, bolstering the Euro, which capped additional losses in the EUR/USD pair.

In August, the Federal Budget Balance indicated a deficit of -170.6 billion dollars, below an anticipated deficit of -260.5 billion dollars, weighing on the US dollar and capping further decrease in the EUR/USD pair at 22:47 GMT.

The market's risk appetite was also dampened by the re-emergence of inflation fears, exacerbated by Friday's higher-than-expected US Producer Prices. Concerns over the progress of the Delta version of the coronavirus and its potential influence on global economic recovery weighed on risk-on market mood and the riskier currency pair EUR/USD.

Furthermore, market investors' attention has switched to the release of the August CPI report, which is predicted to dip to 5.3 percent from 5.4 percent in July. Investors anticipate that the CPI statistics, which will be released on Tuesday, will provide Fed members a clearer picture of tapering. The cautious behavior of investors ahead of the release of the CPI report kept trade volume from US investors low in the market, contributing to the EUR/USD pair's loss.

EUR/USD Intraday Technical Levels

Support Resistance

1.1778 1.1827


1.1729 1.1875

Pivot Point: 1.1798

EUR/USD - Technical Outlook

On Tuesday, the EUR/USD is trading with a bullish bias at the 1.1827 level. The currency pair has already violated an intraday pivot point at the 1.1798 level. On the higher side, the currency pair is facing strong resistance at the 1.1827 level. This particular resistance level is being extended by a downward trendline which can be seen on a 1-hourly timeframe.

A bullish breakout off the 1.1827 level can expose the currency pair towards the next resistance level of 1.1845. Moreover, an additional break out of the 1.1845 level exposes the euro currency towards the next significant resistance level of 1.1874 level.

Speaking about the support levels, the EUR/USD currency pair faces immediate support at 1.1816, and below this, the next support will prevail at the 1.1798 level. The leading technical indicator, stochastic RSI, is holding in a buying zone. Therefore the bullish bias dominates above 1.1816 and vice versa. All the best


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