EUR/USD, GBP/USD and EUR/GBP Forecasts – Dollar Noisy on NFP Friday

EUR/USD Technical Analysis

The Euro has found itself drifting a little bit lower during the trading session here on Friday, only to turn around and show signs of life after the jobs report came out at 50,000 added last month instead of the expected 65,000.

That being said, I do not know that this is enough to change much, and therefore, I think the analysis stands that we will remain in consolidation overall. If the market does turn around from here, and it very well could, then the 1.18 level will be the barrier above that I think we struggle to take out. To the downside, we have the 200-day EMA at the 1.15 level.

GBP/USD Technical Analysis

The British pound initially dipped as well, but it looks like it is turning around, and I think we could see a situation where the market tries to get back to the 1.35 level, maybe even the 1.3550 level. This would have markets essentially looking very much like they have for a while now, with consolidation being the way forward.

I think the jobs report just kind of told us what we already knew. A miss of 15,000 in the employment figures really is a rounding error in the United States, so I don’t know that anything will have changed.

EUR/GBP Technical Analysis

The Euro initially tried to rally against the British pound but has found itself rolling over again. I think at this point it’s very likely that we test the 200-day EMA and then perhaps go looking at the 0.86 level. That area for me is a hard floor. Anything below there, then this pair gets really ugly.

I don’t like buying it, and I’ve been waiting for a shorting opportunity. It’s possible it may have just presented itself in this environment. It now looks like the 0.87 level will continue to offer resistance.

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