Currency pair Euro Dollar EUR/USD completes the trading week near the 1.1166 area. The pair continues to move within the decline and the downward channel. Moving averages indicate a bearish trend. At the moment, we should expect an attempt to grow and test the resistance area near the level of 1.1255. 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 the level of 1.0765.
EUR/USD Forecast and Analysis May 20 — 24, 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 index (RSI) will come out. The second signal may be a rebound from the upper boundary of the downward channel. Cancellation of the option of falling quotations of the Euro/Dollar pair in the current trading week on May 20 — 24, 2019. Strong growth and a breakdown of the level of 1.1365 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 1.1745. With the breakdown of the support area and closing of quotes below the level of 1.1085, we should expect confirmation of the development of a downtrend in the pair.
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 mentioning: Germany Gross Domestic Product (GDP) q/q, Ifo Germany Business Climate, Federal Reserve System (Fed) Chair Powell Speech, United States Existing Home Sales, United States Core Durable Goods Orders m/m.
EUR/USD Forecast and Analysis May 20 — 24, 2019 implies an attempt to test the resistance area near the 1.1255 level. Where can we expect to continue the fall of the pair in the area below the level of 1.0765. A trend line test on the relative strength index (RSI) will be in favor of the fall. Cancellation of the option to reduce the euro dollar will be a strong growth and the breakdown level of 1.1365. In this case, we should expect the pair to continue to grow with a potential target at the level of 1.1745.