Currency pair Euro Dollar EUR/USD completes the trading week near the 1.1820 area. The pair continues to move within the framework of the fall and the beginning of the development of the “Head and Shoulders” reversal pattern. Moving averages indicate a bullish trend for the pair. Prices are repelled from the area between the signal lines, which indicates pressure from buyers of the European currency and the likely continuation of growth from the current levels. At the moment, we should expect an attempt to develop growth and test the resistance area near the level of 1.2040. 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 1.1215.
EUR/USD Forecast and Analysis October 12 — 16, 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 breakdown of the lower border of the ascending channel. Cancellation of the option of falling quotations of the Euro Dollar pair in the current trading week October 12 — 16, 2020 will be a strong growth and a breakdown of the level of 1.2305. This will indicate a breakdown of the resistance area and continued growth of the pair to the area above the level of 1.2675. With the breakdown of the support area and closing of quotations below the level of 1.1475.
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: ZEW Germany Economic Sentiment Indicator, EIA United States Crude Oil Stocks Change, United States Retail Sales m/m.
EUR/USD Forecast and Analysis October 12 — 16, 2020 suggests an attempt to test the resistance area near the level of 1.2040. Where can we expect the pair to continue falling to the area below the level of 1.1215. 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 1.2305. In this case, we should expect the pair to continue to grow with a potential target at the level of 1.2675.
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