Currency pair Euro Dollar EUR/USD completes the trading week near the 1.1887 area. The pair continues to move within the correction and completion of the large “Head and Shoulders” reversal pattern. Moving averages indicate a bullish trend for the pair. Prices are again testing 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 1.1935. 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 1.0845.
EUR/USD Forecast and Weekly Analysis August 2 — 6, 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 see, this will be the fourth test of this line. 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 quotes of the Euro/Dollar pair in the current trading week August 2 — 6, 2021 will be a strong growth and a breakdown of the level of 1.2365. 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 1.1565, which will indicate a breakdown of the lower boundary of the “Head and Shoulders” model.
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: ISM United States Manufacturing Purchasing Managers Index (PMI), EIA United States Crude Oil Stocks Change, ADP United States Nonfarm Employment Change, United States Nonfarm Payrolls.
EUR/USD Forecast and Weekly Analysis August 2 — 6, 2021 suggests an attempt to correct and test the resistance area near the level of 1.1935. Where can we expect the pair to continue falling to the area below the level of 1.0845. 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 1.2365. 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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