EUR/USD Forecast – Euro Continues to See Upward Pressure in The Short Term

Euro vs US Dollar Technical Analysis

The euro has shot straight up in the air after the US jobs report missed what was the expected number by about 60 maybe 70,000. With that being the case, the market has slammed into the 200 day EMA, which of course is an indicator that a lot of people pay attention to. And of course, we have also touched the 1.08 level so that in and of itself does cause a little bit of hesitation. However, at this point, it looks like the markets are simply thrashing from one direction to another overall.

Whether or not we truly take off to the upside remains to be seen. But I think you’ve got a situation where traders are probably heading back into the previous consolidation area. If that’s the case, then we’ll have to wait and see. But traders seem to be betting that the Federal Reserve may be quicker to cut rates. Does it really change anything? Probably not. But ultimately, this is a market that I think is probably going to go a little bit higher.

I wouldn’t say a lot though. I think you still have a situation where the ECB is likely to cut before the Fed, so the 1.10 level above will continue to be resistance. Underneath 1.07 is support, and I think we’re basically heading to the middle at this point in time. Keep in mind that geopolitical risk, of course, could have people running back to the dollar, but right now it looks like some of the US dollar strength is coming out of the market.

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