EUR/USD Forecast – Euro Goes Back and Forth to Kick Off the Week

EUR/USD Forecast Video for 07.02.23

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the trading session on Monday, as we are trying to figure out whether or not we are going to continue to see selling pressure. At this point, this is a market that is on the precipice of something big, and if we continue to see a lot of negative selling pressure, that could really send the euro reeling. Ultimately, this is a situation that will have to sort itself out, but it certainly looks as if the Euro is in trouble all of the sudden. After all, the jobs number on Friday was a barnburner, and it looks like inflation in the United States is going nowhere right now.

Looking at this chart, we could drop to the 1.06 level with a little bit of negativity. The market has seen a lot of noise in that area, and therefore I think we can see a lot of support. However, if we break down below that level, and then we get hammered and go much lower. On the other hand, if we turn around and rally, the question now will be whether or not we can break through all of that negativity?

I don’t think that happens easily anytime soon. In other words, we may either be in a pullback, or we may have seen the beginning of something rather negative. I think we are still trying to sort that out at the moment, but eventually we should do so, giving us a clearer picture of where we are going to be involved for the longer term. Nonetheless, things certainly look rather negative.

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