EUR/USD Forecast – Euro Pulls Back After Jobs Number
EUR/USD Forecast Video for 05.12.22
Euro vs US Dollar Technical Analysis
The Euro has been very bullish as of late, but the Friday market was a completely different animal as the jobs number came out hotter than anticipated in the United States. Because of this, it looks as if the market is trying to figure out what to do next, as the markets are all over the place in general. With the jobs number coming out hotter than anticipated, it appears that Jerome Powell was being honest when he said they may have to stay tight for longer. Unfortunately, not everybody in the market had been paying attention to this, so it’s obvious that we have seen a significant shock.
The 200-Day EMA sits just below the 1.04 level, which is an area that has a little bit of psychology attached to it. Underneath there, there are plenty of support levels as well, so I think it’s probably only a matter of time before buyers try to come in and save the Euro. However, if we break down below the 1.03 level, then it’s likely that the uptrend in the Euro is over, and we will continue the overall negativity.
Nonetheless, people are always trying to come up with some type of reason why the Federal Reserve is going to bail out Wall Street, so don’t be surprised if it ends up being choppy and indecisive for a while. On a breakout to the upside, meaning that we clear the 1.05 level, then it will be obvious that the currency market is completely ignoring the Federal Reserve at that point in time.
For a look at all of today’s economic events, check out our economic calendar.