Currency pair Euro Dollar EUR/USD completes the trading week near the 1.1721 area. The pair continues to move within the correction and the upward channel. 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 a correction and a test of the support area near the level of 1.1675. Where is the rebound and continued growth expected from the Euro Dollar. The potential target of the rise is the area above the level of 1.2135.
EUR/USD Forecast and Analysis October 19 — 23, 2020
A test of the support line on the relative strength index (RSI) will be in favor of raising the EUR/USD currency pair on Forex. The second signal will be a rebound from the lower border of the ascending channel. Cancellation of the option of raising the quotes of the Euro/Dollar pair for the current trading week on October 19 – 23, 2020, will be a fall and a breakdown of the level of 1.1505. This will indicate a breakdown of the support area and the continued fall of the pair to an area below the level of 1.1165. With the breakdown of the resistance area and closing of quotations above the level of 1.1905, which will indicate the completion of the formation of an inverted ”Head and Shoulders” 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: Speech by the President of the European Central Bank (ECB) President Lagarde Speech, Speech by the Chairman of the Federal Reserve Federal Reserve System (Fed) Chair Powell Speech, United States Building Permits, EIA United States Crude Oil Stocks Change, United States Existing Home Sales.
EUR/USD Forecast and Analysis October 19 — 23, 2020 suggests an attempt to test the support area near the level of 1.1675. Where can we expect the pair to continue to grow to the area above the level of 1.2135. An additional signal in favor of the rise will be a test of the support line on the relative strength index (RSI). Cancellation of the growth option for the Euro/Dollar will be a fall and a breakdown of the level of 1.1505. In this case, we should expect the pair to continue to decline with a potential target at the level of 1.1165.
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