Currency pair Euro Dollar EUR/USD completes the trading week near the 1.2179 area. The pair continues to move as part of the correction and the formation of a large “Double Top” reversal pattern, the “Head and Shoulders” pattern was broken by the market. 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 1.2255. 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 1.1465.
EUR/USD Forecast and Weekly Analysis May 31 — June 4, 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 ”Double Top” reversal pattern. Cancellation of the option to reduce the quotes of the Euro/Dollar pair in the current trading week May 31 — June 4, 2021 will be a strong growth and a breakdown of the level of 1.2465. This will indicate a breakdown of the resistance area and continued growth of the pair to an area above the level of 1.2855. With the breakdown of the support area and closing of quotations below the level of 1.1805, which will indicate a breakdown of the lower border of the ascending channel.
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) United States Nonfarm Employment Change (ADP United States Nonfarm Employment Change), EIA United States Crude Oil Stocks Change, United States Nonfarm Payrolls.
EUR/USD Forecast and Weekly Analysis May 31 — June 4, 2021 suggests an attempt to correct and test the resistance area near the level of 1.2255. Where can we expect the pair to continue falling to the area below the level of 1.1465. 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 fall Euro/Dollar will be a strong growth and a breakdown of the level of 1.2465. In this case, we should expect the pair to continue to rise with a potential target at the level of 1.2855.
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