EUR/USD Forecast Video for 07.04.23
Euro vs US Dollar Technical Analysis
The euro has been somewhat quiet during trading on Thursday, as it looks like the markets are willing to sit in some type of range. At this point, all eyes are on the Non-Farm Payrolls number coming out on Friday, and therefore it’s not a huge surprise to see market participants taking a bit of a breather. We are at an extremely overstretched level, but it’s been rather choppy along the way. This means that we could see more range bound trading ahead.
It’s also worth noting that Friday is Good Friday, meaning that a lot of major firms and banks of course will be closed. With that being the case, I would not expect too much on Friday, with maybe the small exception of noise around 8:30 AM Eastern Standard Time in America when the announcement comes out. This of course assumes that your broker is open, which some will be, some won’t be.
Regardless, we are in an area that is a potential double top, so that will most certainly have to be paid close attention to, as it could have a major influence on where we go next. Just above, the 1.1050 level seems to be a barrier, and so far, has not been broken. If we plunge from here, we would test the 1.08 level, which had been important a couple of different times, and then possibly the 50-Day EMA which sits just below there.
I would put only so much faith in any action on Friday, simply because the liquidity won’t be there. That being said, it’s very likely that we would see a big move on Monday if in fact the jobs number does shock people. The best course of action right now is to keep your position size small and wait for liquidity to come back on Monday, which won’t actually happen in full force until the Americans come on board as several major European countries have a bank holiday on Monday. Because of this, the fact that we are at a very precarious area opens up the possibility of a bigger move, but the next couple of trading sessions could be very difficult to navigate due to special conditions.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/eur-usd-forecast-euro-continues-123507259.html