EUR/USD Forecast – Euro Screams Higher
EUR/USD Forecast Video for 02.12.22
Euro vs US Dollar Technical Analysis
The Euro has rallied again during the trading session on Thursday to reach the 1.05 level, as we have seen a lot of upward momentum yet again. Whether or not the market can hang onto that still remains to be seen, especially as we have the NFP job report coming out on Friday. If we are witnessing a major trend change, we have plenty of time to get involved so there’s no point in trying to chase a trade quite yet. In fact, I would be waiting for some type of breakout and then pull back that confirms support that I would get involved.
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On the other hand, if we broke down below the 200-Day EMA, then the market could drop down to the 1.03 level, maybe even down to the 1.01 level. Looking at this chart, that is a possibility but we need to see a complete turnaround at this point. Ultimately, this is a market that would be paying close attention to the jobs figure on Friday, and that of course will have its own influence, so with that being said I think we’ve got a situation where you need to be cautious, but I think just like in the British pound, the weekly candlestick is going to tell the story, and therefore I’m not necessarily looking to put money to work quite yet. This is probably more of a Monday story before it’s all said and done.
Expect volatility, especially as we start to head toward the December Federal Reserve meeting, although it’s probably worth noting that the market has already priced in the idea of a 50 basis point rate hike, so as long as that’s going to be the case it may not have much of an influence.
For a look at all of today’s economic events, check out our economic calendar.