Currency pair Euro/Dollar EUR/USD continues to move within the falling and descending channel. Moving averages indicate the presence of a short-term bullish trend in the pair. Prices broke the area between the signal lines down, which indicates pressure from sellers of the European currency and a potential continuation of the drop in asset quotes from current levels. At the time of publication of the forecast, the exchange rate of the Euro to the US Dollar is 1.0876. As part of the Forex forecast for May 16, 2023, we should expect a demand for the development of a bullish price correction and a test of the resistance level, which is located on the pair near the area of 1.0920. Next, prices bounced down and the Euro-Dollar currency pair began to fall. The area below the level of 1.0745 is the potential target of such a movement on FOREX.
EUR/USD forecast Euro Dollar for May 16, 2023
An additional signal in favor of a decrease in EUR/USD quotations tomorrow will be a bounce from the upper border of the descending channel. The second signal in favor of this option will be a break from the resistance line on the relative strength indicator (RSI). A strong growth and a breakdown of the level of 1.0975 will cancel the option of lowering the quotations of the Euro-Dollar currency pair. This will indicate a breakdown of the resistance area and continuation of growth in the area at the level of 1.1135. Confirmation of the drop in the EUR/USD currency pair should be expected with a breakdown of the support level and closing of the price below the level of 1.0815.
Among the important news from Europe and the USA that may have an impact on the EUR/USD exchange rate, it is worth highlighting: European Union Employment Change q/q, European Union Gross Domestic Product (GDP) q/q, ZEW Germany Economic Sentiment Indicator, United States Retail Sales m/m, President’s Speech European Central Bank (ECB) President Lagarde Speech.
EUR/USD forecast Euro Dollar for May 16, 2023 suggests a demand for the development of a bullish correction of the pair and a test of the resistance area near the level of 1.0920. Where should we consider the rebound of the price down and the demand for the drop of the currency pair in the market to the area below the level of 1.0745. An additional signal in favor of a decrease in the instrument on the Forex market will be a test of the trend line on the relative strength indicator (RSI). The cancellation of the option with the fall of the EUR/USD pair will be a strong increase in quotations and a breakdown of the level of 1.0975. This will indicate a breakdown of the resistance area and the continuation of the growth of the currency pair on Forex in the region above the level of 1.1135.
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