Affiliate Disclosure
Affiliate Disclosure adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

EUR/USD Forecast: Euro Continues to See Choppy Movement Ahead of NFP

This market is likely to continue its sideways movement within the established range.

  • The euro experienced a decline during the trading session on Thursday, briefly falling below the 200-day Exponential Moving Average.
  • However, as we approach the impending jobs report on Friday, the currency pair appears to be nearing the lower boundary of its prolonged consolidation range.

EUR/USD Forecast Today - 2/02: Choppy Movement Ahead of NFP (Chart)

For EUR/USD, the initial dip below the 200-day EMA was followed by a reversal, indicating signs of recovery. Currently, it appears that the 200-day EMA may provide support, with the 50-day EMA positioned above, acting as resistance under normal circumstances. Additionally, there are growing uncertainties surrounding the potential need for the European Central Bank (ECB) to reduce interest rates. If such a measure becomes necessary, it is reasonable to expect prolonged struggles for the euro, particularly in light of Germany's economic recession, which presents a significant challenge for the ECB.

This market is likely to continue its sideways movement within the established range. Notably, the 1.0750 level beneath holds substantial significance as a major support level. Consequently, it is advisable to view the market through the lens of being closer to the bottom of the range rather than the top. Should a weekly candlestick closure occur below the 1.0750 level, it could potentially trigger a significant downward movement.

Top Forex Brokers

    Choppy Behavior

    In essence, the market is expected to exhibit choppy behavior, with limited changes in the overall landscape. It is important to note that the probability of fading rallies outweighs other potential scenarios. While the breach of the 1.1000 level above would constitute a significant development for the euro, current conditions do not indicate that such an event is imminent. Friday's trading session is anticipated to be volatile, necessitating caution in terms of position size. Exercising prudence and avoiding overextension are paramount, particularly during the Non-Farm Payroll announcement, when the allure of substantial gains can be tempting.

    In the end, the euro faced a temporary setback in Thursday's trading session, and attention is now focused on the impending jobs report. The currency pair is situated near the lower boundary of its long-standing consolidation range. While support from the 200-day EMA is anticipated, the looming possibility of ECB interest rate cuts and Germany's economic woes cast a shadow on the euro's long-term prospects. Market dynamics suggest continued range-bound trading, with a preference for fading rallies. The breach of the 1.1000 level remains a distant possibility, and traders should exercise caution and avoid excessive risk-taking, especially during volatile events like the Non-Farm Payroll announcement.

    Ready to trade our Forex daily forecast? We’ve shortlisted the top forex brokers in the industry for you.

    Christopher Lewis
    About Christopher Lewis

    Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

    Most Visited Forex Broker Reviews