EUR/USD Forecast – Euro Continues to Look for Direction

EUR/USD Forecast Video for 03.01.23

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the trading session on Monday, as we continue to look for some type of directionality. Keep in mind that the jobs number comes out on Friday and that will more likely than not be the next major mover of markets. With this being the case, I think we’ve got more noise than anything else as the 1.06 level underneath continues offer major support, while the 1.08 level above offers significant resistance.

The 50-Day EMA sits underneath and is starting to get ready to cross the 200-Day EMA, forming the so-called “golden cross.” It’s also worth noting that we could be in the process of trying to form a little bit of a “double top” near the 61.8% Fibonacci level, but I think it’s a little early to make that call. With that in mind, I think we’ve got a situation where we will probably see more choppy behavior than anything else during the rest of the week, and therefore I will be paying close attention to whether or not we can break out of this area.

Once we get the jobs number, then we will start to have normal liquidity again, meaning that we could see a bigger move. Ultimately, this is a scenario where we have a lot of questions asked, but eventually we should see a move that dictates the next several months. The Euro course has to deal with the overall risk parameters of the markets for the next week or 2, as we trying to figure out where risk appetite is going for 2023.

For a look at all of today’s economic events, check out our economic calendar.