Currency pair Euro Dollar EUR/USD completes the trading week near the 1.1884 area. The pair continues to move as part of the correction and the formation of the “Head and Shoulders” reversal pattern. Moving averages indicate a bullish trend for the pair. Prices broke through the area between the signal lines upwards and went far from the indicator lines, which indicates strong pressure from buyers of the European currency and the likely continuation of growth from the current levels. At the moment, we should expect an attempt to develop growth and test the resistance area near the level of 1.1915. Where is the rebound and the continuation of the fall of the Euro Dollar expected. The potential target of the rise is the area below the level of 1.1205.
EUR/USD Forecast and Analysis August 31 — September 4, 2020
In favor of the fall of the EUR/USD currency pair on Forex, a test of the resistance line on the relative strength index (RSI) will come out. The second signal will be a breakdown of the lower border of the ascending channel. Also, one should not exclude the formation of the Expanding Formation model. Cancellation of the option of falling quotations of the Euro/Dollar pair in the current trading week August 31 — September 4, 2020, will be a strong growth and a breakdown of the level of 1.2205. This will indicate a breakdown of the resistance area and continued growth of the pair to the area above the level of 1.2505. With the breakdown of the support area and closing of quotations below the level of 1.1605, we should expect confirmation of the development of a bearish movement in the pair and the completion of the formation of the “Head and Shoulders” reversal pattern.
Among the important news from America and Europe in the next trading week, which may affect the EUR/USD rate, it is worth highlighting: ISM United States Manufacturing Purchasing Managers Index (PMI), ADP United States Nonfarm Employment Change, EIA United States Crude Oil Stocks Change, ISM United States Non- Manufacturing Purchasing Managers Index (PMI), United States Nonfarm Payrolls.
EUR/USD Forecast and Analysis August 31 — September 4, 2020 implies an attempt to test the resistance area near the level of 1.1915. Where can we expect the pair to continue falling to the area below the level of 1.1205. An additional signal in favor of a decline will be a test of the resistance line on the relative strength index (RSI). Cancellation of the option to drop the Euro/Dollar will be a strong growth and a breakdown of the level of 1.2205. In this case, we should expect the pair to continue to grow with a potential target at the level of 1.2505.
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