Currency pair Euro Dollar EUR/USD completes the trading week near the 1.1672 area. The pair continues to move as part of the fall and the beginning of the development of the large “Head and Shoulders” reversal pattern. Moving averages indicate a bearish trend. Prices went down from the area between the signal lines, which indicates pressure from the sellers of the European currency and the likely continuation of the fall from the current levels. At the moment, we should expect an attempt to develop a bullish correction and a test of the resistance area near the level of 1.1775. Where the rebound is expected from and the continuation of the fall of the Euro Dollar. The potential target of the decline is the area below the level of 1.0945.
EUR/USD Forecast and Analysis November 1 — 5, 2021
An additional signal in favor of the fall of the EUR/USD currency pair on Forex will be a test of the downward trend line on the relative strength index (RSI). The second signal will be a rebound from the ”Neckline” of the ”Head and Shoulders” reversal pattern. Cancellation of the option to reduce the quotations of the Euro/Dollar pair in the current trading week November 1 — 5, 2021 will be a strong growth and a breakdown of the level of 1.2245. This will indicate a breakdown of the resistance area and continued growth of the pair to an area above the level of 1.2775. With the breakdown of the support area and closing of quotations below the level of 1.1325, which will indicate a breakdown of the lower border of the descending channel.
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: ADP United States Nonfarm Employment Change, ISM United States Non-Manufacturing Purchasing Managers Index (PMI), Federal Reserve System (FRS) decision on interest Federal Reserve System (Fed) Interest Rate Decision, Federal Open Market Committee (FOMC) Press Conference, United States Nonfarm Payrolls.
EUR/USD Forecast and Analysis November 1 — 5, 2021 suggests an attempt to develop a bullish correction and test the resistance area near the level of 1.1775. Where can we expect the pair to continue falling to the area below the level of 1.0945. 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 1.2245. In this case, we should expect the pair to continue to rise with a potential target at the level of 1.2775.
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