Euro vs US Dollar Technical Analysis
The Euro rallied significantly during the course of the early hours on Friday after the jobs number printed 114,000 instead of the expected 175,000. And therefore, we see traders out there off to the races expecting that the Federal Reserve is going to start cutting massively. That could be the case, but at this point in time, this is a market that when you look at it from a longer term perspective, is in fact still somewhat range bound.
And this, of course, is something that people need to keep in mind. It just goes from one big figure to the next. It’s a very technical market, and therefore it’s a little dry to trade at times. But having said that, it is also a sign of US dollar strength or weakness. And we certainly see US dollar weakness in the short term.
Whether or not we can take off to the upside remains to be seen. If we do clear the 1.09 level, then the 1.0950 level would be your next target initially. And then after that, you’re looking at the 1.10 level. A pullback from here would actually be a pretty negative turn of events, considering that the US just signaled that although it may not be in a recession, we certainly are driving towards something like that. So, if the Euro can’t capitalize on that, it’s not a good look. At that point, I would anticipate revisiting the 1.08 level below, which would be a strong turnaround to say the least.
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