EUR/USD Forecast – Euro Continues to Look Threatened

EUR/USD Forecast Video for 09.01.23

Euro vs US Dollar Technical Analysis

The Euro has drifted a little bit lower during the trading session on Friday, as we have seen a lot of negativity heading into the jobs number. The Non-Farm Payroll numbers came in at 223,000 jobs added for December, which is a little bit hotter than the consensus, but nothing astronomically strong. Because of this, market looks as if it is not very surprised by the announcement, and we may continue to see this market move on other things.

The 50-Day EMA is trying to get to the 200-Day EMA, so that is worth paying attention to as well. If we can get the so-called “golden cross”, there will be longer-term traders that are willing to jump in based upon that signal, but quite frankly it tends to be rather late. Nonetheless, it’s something to keep in the back of your mind.

If we break down below those moving averages, then I think the Euro continues to break down, perhaps falling toward the 1.03 level, and then eventually the 1.01 level. On the other hand, if we break above the 1.06 level, it opens up 1.07 as a potential short-term target. Regardless, I think we are going to see a lot of choppy and sideways action, but it looks like there is a little bit of a slightly negative tilt at the moment. Whether or not that continues remains to be seen, but I think we’ve got a situation where the market is going to continue to move in micro movements, as we are trying to figure out what to do with our trading positions for the year as we kick off normal liquidity.

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