Currency pair Euro Dollar EUR/USD completes the trading week near the 1.1008 area. The pair continues to move within the correction and the bearish channel. There is also the potential for the formation of the «Head and Shoulders» reversal pattern. The pair again repels from the area between the signal lines, which indicates pressure from the bears. Moving averages indicate a downward trend in the pair. At the moment, we should expect an attempt to reduce and test the support area near the level of 1.0990. Where is the rebound expected and continued growth of the Euro/Dollar. The potential target of the rise is the area above the level of 1.1655.
EUR/USD Forecast and Analysis December 2 — 6, 2019
In favor of the growth of the EUR/USD currency pair at FOREX, a test of the ascending trend line on the relative strength index (RSI) will come out, as we see, the indicator values have already repelled from this line several times. The second signal may be the completion of the formation of the «Head and Shoulders» reversal pattern. The cancellation of the growth option for the Euro/Dollar pair quotes in the current trading week December 2 — 6, 2019, will be a fall and a breakdown of the level of 1.0855. This will indicate a breakdown of the support area and the continuation of the fall of the pair in the area below the level of 1.0405. With the breakdown of the upper boundary of the downward channel and the closing of quotations above the level of 1.1245, we should expect confirmation of the development of bullish movement in the pair.
Among the important news from America and Europe in the next trading week that may affect the EUR/USD rate, it is worth highlighting: ISM United States Manufacturing Purchasing Managers Index (PMI), ADP United States Nonfarm Employment Change, European Union Employment Change q/q, European Union Retail Sales m/m, United States Nonfarm Payrolls.
EUR/USD Forecast and Analysis December 2 — 6, 2019 implies an attempt to test the support area near the level of 1.0990. Where can we expect continued growth of the pair in the region above the level of 1.1655. An additional signal in favor of growth will be a test of the support line on the relative strength index (RSI). Cancellation of the growth option for the euro dollar will be a fall and a breakdown level of 1.0855. In this case, we should expect continued decline in the pair with a potential target at 1.0405.