Advertisement
Advertisement

EUR/USD Price Forecast – Euro Hangs Out At Fair Value

By:
Christopher Lewis
Updated: Jan 9, 2020, 16:05 UTC

The Euro has done almost nothing during the trading session on Thursday as we await the Non-Farm Payroll figures on Friday. Ultimately, the market has been consolidating in a 200 point range, and currently sits right in the middle of it.

EUR/USD Price Forecast - Euro Hangs Out At Fair Value

The Euro has done nothing on Thursday as we await the jobs figures on the United States. This makes quite a bit of sense, because quite frankly at such a market moving event. Ultimately, this market is sitting just above the 50 day EMA bit more importantly we are hanging around the 1.11 handle. As we have been consolidating between 1.12 on the top in the 1.10 level on the bottom, it’s obvious that we are essentially halfway between the two, meaning it is essentially “fair value.” At this point, the market looks very likely to wait for the job figures to make its next decision.

EURUSD analysis Video 10.01.20

I suspect that you have to play the market as one that is still consolidating but when you look at the last couple of weeks, it certainly seems as if the Euro is trying to break out to the upside. If we can move above the 1.1250 level, then it’s a clear break out to the upside and we should go looking towards the 1.14 handle eventually. To the downside, if we were to break down below the 1.1075 handle, it would be a “lower low” that the market would have to pay attention to. At that point I would anticipate a move to the 1.10 level where there should be plenty of support. A break down below there obviously would be very negative for the Euro but at this point there is nothing on the chart that suggests it won’t hold. With that, we have clear boundaries to trade this currency pair.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement