EUR/USD Forecast June 2, 2017, Technical Analysis

The EUR/USD pair spent most of the day falling on Thursday, but found enough support at the 1.12 level to turn around and bounce. It looks as if the market is well supported just below that area, so it’s likely that the buyers will return. However, we also have the specter of the jobs number coming out of the United States today, and that of course can have a massive effect on what happens here. The US dollar moving around due to the jobs number of course will have an effect over here as well. I believe as long as we stay above the 1.12 handle, the market will eventually go looking for the 1.13 level, and then the 1.15 level after that as it is the top of the longer-term consolidation area. If we did breakdown below the 1.12 handle, at that point I think the market then find support again at the 1.1160 level underneath.
Are we seeing value?
I suppose the biggest question is whether or not the market is offering value at current levels? I don’t know that’s a long term traders it is, but most certainly the range over the last 3 years has dictated that we still need to go higher. With that in mind, the market did pullback later in the day after trying to rally, so I think that the market is probably going to be decidedly cautious going into the jobs number which of course it isn’t anything out of the ordinary. Once we get that announcement, you can probably expect a massive move in one direction or the other, and that of course brings and the threat of a sudden move against you. Because of this, small positions will be needed, at least until the market comes back down.