FX.co ★ Breaking forecast for EUR/USD on October 10, 2022

Data on the US employment pointed to a drop in the unemployment rate. Notably, the previous data was upwardly revised. However, until the publication of the report, forecasts remained unchanged. Economists supposed that the unemployment rate would be unchanged. However, the unemployment rate dropped to 3.5% from 3.7%, thus causing a further slump in the euro. Today, the market is likely to consolidate near the levels hit on Friday. This could be explained by an absolutely empty macroeconomic calendar. What is more, on Thursday, the US will disclose its inflation figures. That is why investors are likely to remain cautious, expecting one of the most important reports.

US Unemployment Rate

The euro/dollar pair is falling from the parity level. Just in few days, the pair lost more than 270 pips. In fact, the US dollar is recovering after the pair's rise from the local low of the trend.

On the four-hour chart, the RSI technical indicator is hovering in the lower area of 30/50, which points to bearish sentiment among traders.

On the four-hour chart, the Alligator's MAs are headed upwards, thus reflecting the end of the correctional movement. On the daily chart, the indicator resumed falling after a short-lived intersection.

Outlook

Although the euro has significantly depreciated, sellers are still in the market. If the price settles below 0.9700, the volume of short positions may increase.

According to the alternative scenario, the pair will stagnate near the current level.

In terms of the complex indicator analysis, we see that indicators are signaling selling opportunities in the short-term, intraday, and long-period periods due to a downward cycle.