Currency pair Euro/Dollar EUR/USD continues to move as part of the correction. There is potential for an inverted “Head and Shoulders” pattern to form. Moving averages indicate a short-term bearish trend for the pair. Prices broke through the area between the signal lines upward, which indicates pressure from buyers of the European currency and a potential continuation of the growth of quotations from the current levels. At the time of the publication of the forecast, the Euro/US Dollar rate is 1.2129. As part of the Forex forecast for February 16, 2021, we should expect an attempt to develop growth and test the resistance level, which is located on the pair near the area of 1.2145. Further, the rebound and the continuation of the fall of the Euro/Dollar currency pair. The potential target of such a movement on FOREX is the area below the level of 1.2005, after that the beginning of the rise can be considered as part of the reversal pattern development.
EUR/USD Forecast Euro Dollar February 16, 2021
An additional signal in favor of falling EUR/USD quotes will be a test of the upper boundary of the “Head and Shoulders” model. The second signal will be a rebound from the resistance line on the RSI indicator. Cancellation of the option to reduce the quotes of the Euro/Dollar currency pair will be a strong growth and a breakdown of the level of 1.2205. This will indicate a breakdown of the resistance area and a continued rise to the area at 1.2435. Expect confirmation of a fall in the EUR/USD currency pair with a rebound from the resistance level and closing prices below 1.2065.
Among the important news from Europe and the United States that may have an impact on the EUR/USD pair, it is worth highlighting: European Union Employment Change q/q, European Union Gross Domestic Product (GDP) q/q, the ZEW Germany Economic Sentiment Indicator.
EUR/USD Forecast Euro Dollar February 16, 2021 assumes the development of a correction and a test of the resistance area near the level of 1.2145. Where can we expect a rebound and an attempt to continue the pair’s fall to the area below the level of 1.2005. A test of the trend line on the relative strength index (RSI) will be in favor of reducing the currency pair. Cancellation of the EUR/USD pair fall option will be a strong growth in quotations and a breakdown of the level of 1.2205. This will indicate a breakdown of the resistance area and a continuation of the rise of the currency pair on Forex to the area above the level of 1.2435.
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