EUR/USD Forecast – Euro Continues to Attempt Stabilization

EUR/USD Forecast Video for 06.10.23

Euro vs US Dollar Technical Analysis

The euro initially tried to rally during the trading session on Thursday but gave back a bit of the gains right away as it looks like there is still not enough momentum in the euro to turn things around. We are essentially testing the 1.05 level, a large, round, psychologically significant figure that of course would attract a lot of attention. Because of this, I expect a lot of choppiness, and then of course the fact that Friday is the Non-Farm Payroll announcement will only add more fuel to the fire when it comes to volatility. With this in mind, I’m not expecting too much, but I do recognize that we could rally all the way to the 1.06 level, and it would still be just a “blip on the radar.”

If we break down below the lows of the week, it’s very likely that this market will continue to fall toward the 1.0250 level, an area that I think is a potential target, and an area that has previously been important. After that, then we would be talking about the euro reaching down toward parity. That obviously would attract a lot of attention and cause a lot of headlines.

At this point, the market is all about inflation and where central banks are likely to head. Currently, it looks as if the Federal Reserve is going to stay tight for some time, while the European Central Bank is likely to have to loosen sooner or later. Because of this, the euro continues to suffer overall. Alternatively, I think that every time this market rallies, you should be looking for an opportunity to start selling again and picking “cheap US dollars.” We have also seen the recent death cross, which a lot of traders will look at as a longer-term bearish signal that they will have to follow. Alternatively, I do think that we get lower pricing, but between now and the jobs number, I suspect that we will get a lot of choppiness in this area that will be very difficult to hang on to.

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