Currency pair Euro Dollar EUR/USD completes the trading week near the 1.1798 area. The pair continues to move as part of the correction and completion of the formation of the large “Head and Shoulders” reversal pattern. As you can see, prices are once again trying to gain a foothold under the “Neck” line, but so far no breakdown has taken place. As soon as the bears are able to break through this support area, it is worth considering a serious drop in the currency pair. Moving averages indicate a bullish trend for the pair. 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 1.1865. 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 1.0965.
EUR/USD Forecast and Weekly Analysis August 16 — 20, 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), as we can see, there have already been several rebounds from this line, it is possible that another test of the resistance line will give a good signal to continue the decline in the Euro against the Dollar USA. The second signal will be a rebound from the lower border of the bullish channel, which was broken down by the bears. Cancellation of the option to reduce the quotations of the Euro/Dollar pair in the current trading week August 16 — 20, 2021, 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 an area above the level of 1.2705. With the breakdown of the support area and closing of quotations below the level of 1.1605, which will indicate a breakdown of the “Neck” line of the “Head and Shoulders” reversal 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: European Union Employment Change q/q, US Retail Sales MoM (United States Retail Sales m/m, United States Building Permits, EIA United States Crude Oil Stocks Change.
EUR/USD Forecast and Weekly Analysis August 16 — 20, 2021 suggests an attempt to correct and test the resistance area near the level of 1.1865. Where can we expect the pair to continue falling to the area below the level of 1.0965. 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 rise with a potential target at the level of 1.2705.
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