EUR/USD Price Forecast – Euro Gives Up Early GainsThe Euro rallied on Thursday, waiting for the jobs number to come out. It looked rather strong but gave up the gains after the better than anticipated number.
The Euro rallied initially during the trading session on Thursday, but gave back the gains after the jobs number came out much better than anticipated with an addition of over 4 million jobs, this shows that the US economy is much more resilient than people thought and perhaps the fiscal stimulus may not have as much of a “slam dunk” mentality to it in the United States as previously thought. After all, it is an election year and people will have to justify what they do in Congress. If there is going to be less calls for fiscal stimulus, it is likely that the greenback could pick up a little bit of a bid as the ECB is most certainly going to continue flooding the European Union with Euros.
EUR/USD Video 03.07.20
That being said, we have been grinding lower for a while and although it does somewhat look like a flag, the angle of the flag itself is not particularly conducive to fulfill that pattern. With that in mind, I believe that we are simply going to grind lower for a while, trying to get back down towards the 50 day EMA, and then eventually the 200 day EMA which is currently sitting at roughly 1.1050. I am not looking for some type of meltdown, just that I think we continue to see money flow back into the US dollar given enough time. With this, I continue to fade short-term rallies, but I also recognize that we have seen a lot of choppy behavior in the interim, so you need to be overly cautious.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For a look at all of today’s economic events, check out our economic calendar.