EUR/USD Forecast Today 02/05: Sliding Again (Chart)

(MENAFN- Daily Forex)

• The euro has dropped again during the day on Thursday, as we start to head toward the Non-Farm Payroll announcement on Friday.
• The market has been in a bit of a range, but it looks as if we are threatening the downside.
• If we do in fact continue to see downward pressure, I don't see much stopping this market from testing the crucial 1.12 level.

This is an area that's been important multiple times in the past, so I think at this point in time, the market is likely to continue to see that area as a“line in the sand” if you will. This is an area that I think we will be paying close attention to on Friday, as the Non-Farm Payroll announcement is more likely than not going to cause a lot of chaos in the markets as usual. This is a market that will continue to focus on the idea of the tariff war, and whether or not the United States may end up in a recession.

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The technical analysis for this EUR/USD pair is very bullish at the moment, and there are a couple of major support levels that we will be watching. However, if we break down below the 1.12 level, that will be the beginning of people starting to look at the downside possibly. The 50 Day EMA is sitting underneath there and offering some technical support near the 1.1020 level, but as things stand right now, I think we have a situation where it would be very difficult to break down below there. However, if we end up seeing a lot of US dollar strength across the board, then we could get a situation where the euro is a victim of the greenback power across the board.

EURUSD Chart by TradingView

Looking at this chart, I suspect that we probably are more likely than not going to see more sideways action than anything else, with the 1.12 level being a floor, while the 1.15 level is a significant ceiling. Once we break out of this range, then the market will probably start to run in whatever direction it breaks out in.

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