Currency pair Euro Dollar EUR/USD completes the trading week near the area of 1.1777. At this point, we should expect the completion of the formation of the right shoulder of the reversal pattern and the continuation of the fall. The goal of working out the model of the «Head and Shoulders» is the area below the level of 1.1250.
EUR/USD weekly forecast on October 23 — 27, 2017
In favor of the fall of EUR/USD, a test of the broken resistance line will appear on the indicator of relative strength index (RSI). 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.
Expect to accelerate 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 1.1620. The main event of the current trading week the publication of the ECB’s decision on the basic interest rate, which will be held on October 26, 2017, is expected to increase volatility at the time of publication of the news.
EUR/USD weekly forecast on October 23 — 27, 2017 suggests an attempt to continue falling as part of the development of the «Head and Shoulders» model with a potential target near the region of 1.1250, the cancellation of the euro’s fall variant will be a strong growth above the level of 1.2150, which will indicate the continued growth of EUR/USD on Forex and cancellation of the reversal pattern.