Currency pair Euro/Dollar EUR/USD continues to move as part of the fall and the formation of the “Head and Shoulders” reversal pattern. Moving averages indicate the presence of a short-term bullish trend for the pair. Prices have broken through the area between the signal lines up, which indicates pressure from buyers of the European currency and a potential continuation of the growth of asset quotes already from current levels. At the time of publication of the forecast, the Euro against the US Dollar is 1.1049. As part of the Forex forecast for May 5, 2023, we should expect an attempt to develop a rise in prices and a test of the resistance level, which is located on the pair near the area of 1.1085. Further, the rebound in prices down and the beginning 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 1.0595.
EUR/USD forecast Euro Dollar for May 5, 2023
An additional signal in favor of a decrease in EUR/USD quotes tomorrow will be a rebound from the lower boundary of the bullish channel, which was broken down by sellers. The second signal in favor of this option will be a rebound from the resistance line on the relative strength index (RSI). 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 1.1175. This will indicate a breakdown of the resistance area and continued growth to the area at the level of 1.1375 as part of the cancellation of the formation of a reversal pattern. It is worth waiting for confirmation of the fall in the EUR/USD currency pair with a breakdown of the support level and closing the price below the level of 1.0865, which will indicate a breakdown of the lower border of the “Head and Shoulders” reversal pattern and the beginning of the pattern with targets below.
EUR/USD forecast Euro Dollar for May 5, 2023 suggests an attempt to develop a slight bullish correction of the pair and a test of the resistance area near the level of 1.1085. Where should we consider the price bounce down and an attempt to drop the currency pair in the market to the area below the level of 1.0595. The test of the trend line on the Relative Strength Index (RSI) will come out in favor of the instrument’s decline in the Forex market. Cancellation of the option of falling the EUR/USD pair will be a strong growth in quotes and a breakdown of the level of 1.1175. This will indicate a breakdown of the resistance area and continued growth of the Forex currency pair to the area above the level of 1.1375.
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