EUR/USD Price Forecast – Euro Recovers Slightly After Weak Jobs Report

The Euro has rallied significantly during the trading session on Friday to break back above the 1.20 level, but it is worth noting that it is not exactly screaming to the upside, despite the fact that we are at a major support region. It is because of this that I still do not necessarily trust the Euro, even though part of the game was based upon a weaker than anticipated jobs number out of the United States. With that in mind, I do believe at this point it is likely that we will see some type of reaction just above. If we can break above the 1.21 level, then I believe that the Euro has a real fighting chance to reverse the recent selloff.

EUR/USD Video 08.02.21

On the other hand, if we cannot then I think that we may see further downside. European economic numbers are getting worse, and of course there is a lot of noise out there when it comes to the vaccine being delivered. Both of those currently work against the Euro and the European Union, so there is still a threat to the downside, despite the fact that the US may do massive stimulus. That being said, I would not get overly aggressive one way or the other because I believe that we still have a lot of choppiness ahead of us, mainly between the 1.19 and the 1.23 region. The 1.19 level is the bottom of the support that starts at 1.20 level, which of course is not only structurally important but psychologically as well.

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