Currency pair Euro Dollar EUR/USD completes the trading week near the area of 1.1093. The pair continues to move within the correction and the downward channel. Moving averages indicate a downward trend in the pair. The pair again pushes off from the area between the signal lines, which indicates pressure from sellers of the European currency. At the moment, we should expect an attempt to develop an upward correction and test the resistance area near the level of 1.1175. Where is the rebound expected and the continuation of the fall of the Euro/Dollar. The potential target of the rise is the area below the level of 1.0635.
EUR/USD Forecast and Analysis January 20 — 24, 2020
In favor of the fall of the EUR/USD currency pair at FOREX, a test of the downward trend line on the relative strength index (RSI) will be made. The second signal will be a rebound from the upper boundary of the bearish channel. Cancellation of the option of falling quotes of the Euro/Dollar pair in the current trading week January 20 — 24, 2020, will be a strong growth and the breakdown level of 1.1425. This will indicate a breakdown of the resistance area and continued growth of the pair in the area above the level of 1.1845. With the breakdown of the support area and closing of quotes below the level of 1.0875, we should expect confirmation of the development of a downward movement in the pair and the beginning of the development of the «Wedge» model.
Among the important news from America and Europe in the next trading week, which may affect the EUR/USD rate, it is worth highlighting: United States Existing Home Sales, European Central Bank (ECB) Interest Rate Decision, Marginal Lending Facility Rate Decision, European Central Bank (ECB) Monetary Policy Press Conference.
EUR/USD Forecast and Analysis January 20 — 24, 2020 suggests an attempt to test the resistance area near the level of 1.1175. Where can we expect the pair to continue falling to the area below the level of 1.0635. An additional signal in favor of reducing will be the test of the resistance line on the relative strength index (RSI). Cancellation of the fall option Euro/Dollar will be a strong growth and the breakdown level of 1.1425. In this case, we should expect the pair to continue to rise with a potential target at 1.1845.
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