Currency pair Euro Dollar EUR/USD completes the trading week near the 1.1436 area. The pair continues to move as part of the correction and the formation of a large «Triangle» pattern. Moving averages indicate a bullish trend for the pair. Prices broke through the area between the signal lines upwards, which indicates pressure from buyers of the European currency and a likely continuation of the bullish correction. At the moment, we should expect an attempt to develop growth and test the resistance area near the level of 1.1495. 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 1.0965.
EUR/USD Forecast and Analysis July 20 — 24, 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 rebound from the upper border of the «Triangle» pattern. Cancellation of the option of falling quotes of the Euro/Dollar pair in the current trading week July 20 — 24, 2020 will be a strong growth and a breakdown of the level of 1.1645. This will indicate a breakdown of the resistance area and continued growth of the pair to an area above the level of 1.2015. With the breakdown of the support area and closing of quotations below the level of 1.1075, we should expect confirmation of the development of a bearish movement in the pair and the completion of the formation of the «Double Top» reversal pattern.
Among the important news from America and Europe in the next trading week, which may have an impact on the EUR/USD rate, it is worth highlighting: United States New Home Sales.
EUR/USD Forecast and Analysis July 20 — 24, 2020 suggests an attempt to test the resistance area near the level of 1.1495. Where can we expect the pair to continue falling to the area below the level of 1.0965. 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 1.1645. In this case, we should expect the pair to continue to grow with a potential target at the level of 1.2015.
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