Currency pair Euro/Dollar EUR/USD continues to move as part of the correction and the formation of the «Head and Shoulders» reversal pattern. Unfortunately, volatility remains at a rather low level, most likely strong decisions will not occur until the publication of the ECB’s rate decision. Moving averages indicate the presence of a short-term bullish trend for the pair. However, prices broke through the area between the signal lines down, which indicates pressure from sellers. At the time of the publication of the forecast, the euro/dollar rate is 1.1108. As part of the Forex forecast, we should expect an attempt to develop a correction and a test of the resistance level near the 1.1135 area. Further, the rebound and continued fall of the Euro/Dollar currency pair. The potential target of this movement is the area below the level of 1.0885.
EUR/USD Forecast Euro Dollar January 22, 2020
An additional signal in favor of falling EUR/USD quotes will be a test of the resistance line on the relative strength index (RSI). The second signal will be a breakdown of the lower boundary of the ascending channel. Cancellation of the option to reduce the quotes of the Euro/Dollar pair will be a strong growth and the breakdown level of 1.1205. This will indicate a breakdown of the resistance area and continued growth in the area at the level of 1.1405. Expect to accelerate the fall in the EUR/USD pair with the breakdown of the support area and closing below 1.1015.
Among the important news from Europe and America that may affect the course of the EUR/USD pair: Sales in the secondary housing market in the United States (United States Existing Home Sales).
EUR/USD Forecast Euro Dollar January 22, 2020 suggests the development of a correction and test of the resistance area near the level of 1.1135. Where can we expect a rebound and an attempt to continue the fall of the pair in the area below the level of 1.0885. A test of the trend line on the relative strength index (RSI) will be in favor of reducing the currency pair. Cancellation of the option of falling EUR/USD will be a strong growth and the breakdown level of 1.1205. This will indicate a breakdown of resistance and continued growth of the pair in the area above the level of 1.1405.
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