Currency pair Euro Dollar EUR/USD closes the trading week near the area of 1.1835. At this point, we should expect an attempt to grow the pair in the area above the level of 1.19 as part of the completion of the «Head and Shoulders» reversal pattern. Near level 1.19, it is expected to complete the right shoulder of the model and begin the decline with a potential target near the level of 1.1250.
EUR/USD weekly forecast on October 16 — 20, 2017
In favor of the fall of EUR/USD, a downtrend test on the relative strength indicator (RSI) will perform. The cancellation of the fall option will be a strong growth and breakdown at 1.2150, indicating that the pair will continue to rise above 1.25 and the reversal of the reversal pattern. Expect the acceleration of the fall of the Euro/Dollar on Forex costs with a breakdown of the level of the line of the Neck reversal pattern of the «Head and Shoulders» and closing below 1.1650.
Among the important news from America and Europe in the next trading week that can influence the EUR/USD rate is: The volume of issued construction permits, The number of initial applications for unemployment benefits.
EUR/USD weekly forecast on October 16 — 20, 2017 involves a test of the level of 1.1950, from which one should expect a rebound and a fall of the pair below the level of 1.1250 as part of the beginning of the development of the «Head and Shoulders» reversal pattern, the abolition of the euro 1.2150, which will indicate the continued growth of EUR/USD on Forex and the cancellation of the reversal model.
