EUR/USD Forecast – Euro Continues to See Balance

Euro vs US Dollar Technical Analysis

The Euro rallied significantly during the early hours on Thursday, but at this point, it looks like we are essentially in the middle of a larger consolidation area, and therefore I think the upside is somewhat limited. Furthermore, you have to keep in mind that Friday is Non-Farm payroll Friday and that of course will have a major influence on what happens next. With this being the case, I think you’ve got a situation where we are essentially in the Middle of this range and therefore there isn’t a trade, but it does make a certain amount of sense. This is where we ended up mainly due to the fact that a lot of traders wouldn’t want to be too far stretched in one direction or the other before this crucial announcement.

So we are basically where the market has defined fair value. The 1.07 level underneath is a major support level and the 1.10 level above is a major resistance barrier. The fact that we are hanging around the 1.0850 level is literally the middle of this. So, I think this gives us a sense of balance. Now, a lot of what happens next will come down to the non-farm payroll announcement, so we will have to wait and see how this closes on Friday. Either way, I doubt there’s going to be a huge change in the sense that I think we are still going to be in this range once it’s all said and done. Ultimately, I would like to fade an attempt to break out of this range, but we will have to wait and see when and where that happens.

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