Currency pair Euro Dollar EUR/USD completes the trading week near the area of 1.1235. The pair continues to move within the correction and the downward channel. Moving averages indicate a bearish trend. At the moment, we should expect an attempt to continue growth and test the resistance area near the level of 1.1390. Where is expected to rebound and the continuation of the fall of the Euro/Dollar. The potential target of the decline is the area below 1.0815.
EUR/USD Forecast and Analysis July 22 — 26, 2019
In favor of the fall of the EUR/USD currency pair at FOREX, a test of the downward trend line on the relative strength indicator will come out. The second signal may be a rebound from the upper boundary of the downward channel. Also, do not exclude the formation of the «Head and Shoulders» reversal pattern with a potential breakdown of the structure downwards. Cancellation of the option of falling quotations of the Euro/Dollar pair in the current trading week on 22 — 26, 2019. A strong growth and a breakdown of the level of 1.1595 will become. This will indicate a breakdown of the upper boundary of the downward channel and the continued growth of the pair in the area above the level of 1.1875. With the breakdown of the support area and closing of quotes below the level of 1.1105, we should expect confirmation of the development of the downward movement in the pair.
Among the important news from America and Europe in the next trading week that may have an impact on the EUR/USD rate, it is worth highlighting: United States Existing Home Sales, United States New Home Sales, Ifo Germany Business Climate, European Central Bank (ECB) Interest Rate Decision, European Central Bank (ECB) Monetary Policy Press Conference, United States Gross Domestic Product (GDP) q/q.
EUR/USD Forecast and Analysis July 22 — 26, 2019 implies an attempt to test the resistance area near the 1.1390 level. Where can we expect the continuation of the fall of the pair in the area below 1.0815. A trend line test on the relative strength indicator will be in favor of the fall. Cancellation of the option of reducing the euro dollar will be a strong growth and the breakdown level of 1.1595. In this case, we should expect the pair to continue to grow with a potential target at the level of 1.1875.