EUR/USD Forecast – Euros Sits at Extreme Highs

EUR/USD Forecast Video for 10.04.23

Euro vs US Dollar Technical Analysis

The Euro has done very little on Friday, as we are at an extreme level. Ultimately, the market is going to continue to see a lot of noisy behavior, but quite frankly we are on the precipice of getting the Non-Farm Payroll announcement that a lot of people will pay close attention to due to the fact that the Federal Reserve is in the limelight right now. After all, inflationary concerns continue to be the main thing driving the market, and of course you need to keep in mind that if employment remains strong, that’s a reason to think that perhaps the Federal Reserve will have to stay tight.

Obviously, the exact opposite could be true, as if employment starts to fall, we could see more of a “risk on move.” That being said, the market is a little overextended, so it is possible that we could see a little bit of hesitation. If we break down below the lows of the last couple of days, it’s possible that the market could go down to the 1.08 level. The 1.08 level is an area that we have seen a lot of noise at previously, and the 50-Day EMA sits underneath there and is starting to rise.

On the other hand, if we were to turn around and break above the 1.1050 level, then it’s likely that market could continue to rally, perhaps go into the 1.1250 region, maybe even as high as the 1.15 level. Keep in mind that Good Friday will keep liquidity low, then of course we have to deal with massive amounts of bank liquidity being out of the market on Monday, as there are multiple countries that are going to be closed in the European Union. The market will then look to the United States, as it will be a normal day in America. That being said, the market continues to see a lot of volatility in general, so you should be cautious with your position size, as the uncertainty continues to be a major issue for traders around the world, not just in this market.

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