The currency pair Euro to US Dollar EUR/USD continues to trade as part of the start-up of the bearish wave model of Wolf with a potential drop target near the area of 1.04. At the moment, the pairs are testing the support area, which indicates a possible rebound to the area above the level of 1.0940, from which it is expected to try to turn and fall into the area below the level of 1.07 as part of the development of the head and shoulders reversal model.
Technical analysis & forecast EUR/USD on May 11, 2017
An additional signal in favor of the EUR/USD falling will be a downward resistance test on the relative strength indicator. However, we should not exclude the attempt of the breakdown of the support area and the fall in the quotes of the euro dollar from the current levels. The cancellation of the decline can be a strong growth and breakdown of the local maximum area.
Among the important news that may affect the euro against the US dollar, it is worth mentioning, the Producer Price Index in the US, the growth is expected from the level of -0.1% to the level of 0.2%, the number of initial applications for unemployment benefits, the growth is expected from the level 238K to the level of 245K, which may have a short-term pressure on the US dollar rate in world markets.
Technical analysis & Forecast EUR/USD on May 11, 2017 suggests an attempt to correct the pair in the area above the level of 1.0940, where it is expected to complete the formation of the head and shoulders reversal pattern, which will indicate the continued fall in the quotations of the euro-dollar pair on Forex.
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