Currency pair Euro Dollar EUR/USD completes the trading week near the area of 1.2094. The pair continues to move as part of the bullish correction and the formation of a large ”Head and Shoulders” reversal pattern, which is able to send the pair to the level of 1.1050. Moving averages indicate a bullish trend for the pair. Prices went up 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 bullish correction and test the resistance area near the level of 1.2115. 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 1.1345.
EUR/USD Forecast and Weekly Analysis May 3 — 7, 2021
An additional signal in favor of the fall of the EUR/USD currency pair on FOREX will be a test of the broken trend line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the ”Head and Shoulders” reversal pattern. Cancellation of the option to reduce the quotes of the Euro/Dollar pair in the current trading week May 3 — 7, 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 1.2785. With the breakdown of the support area and closing of quotations below the level of 1.1555, which will indicate the completion of the formation of the reversal pattern, as well as the breakdown of the ”Neckline”.
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, United States Nonfarm Payrolls.
EUR/USD Forecast and Weekly Analysis May 3 — 7, 2021 suggests an attempt to correct and test the resistance area near the level of 1.2115. Where can we expect the pair to continue falling to the area below the level of 1.1345. 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 1.2785.
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