Currency pair Euro Dollar EUR/USD completes the trading week near the 1.2182 area. The pair continues to move within the framework of the growth and the ascending channel. Moving averages indicate a bullish trend for the pair. Prices bounced back 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 1.2285. Where is the rebound and the continuation of the fall of the Euro Dollar expected. The potential target of the decline is the area below the level of 1.1575, as part of the formation of a large “Head and Shoulders” reversal pattern.
EUR/USD Forecast and Weekly Analysis January 4 — 8, 2021
An additional signal in favor of the fall of the EUR/USD currency pair on Forex will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the ascending channel. Cancellation of the option of falling quotes of the Euro/Dollar pair in the current trading week January 4 — 8, 2021 will be a strong growth and a breakdown of the level of 1.2455. This will indicate a breakdown of the resistance area and continued growth of the pair to the area above the level of 1.2765. With the breakdown of the support area and closing of quotations below the level of 1.1845.
Among the important news from America and Europe in the next trading week that may have an impact on the EUR/USD rate, it is worth highlighting: ADP United States Nonfarm Employment Change), EIA United States Crude Oil Stocks Change, European Union Retail Sales m/m, ISM United States Non-Manufacturing Purchasing Managers Index (PMI), United States Nonfarm Payrolls.
EUR/USD Forecast and Weekly Analysis January 4 — 8, 2021 suggests an attempt to test the resistance area near the level of 1.2285. Where can we expect the pair to continue falling to the area below the level of 1.1575. An additional signal in favor of a decline will be a test of the support 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 1.2455. In this case, we should expect the pair to continue to rise with a potential target at the level of 1.2765.
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