Currency pair Euro/Dollar EUR/USD continues to move as part of the fall and the downward channel. There is potential for completing this sideways correction and forming a ”Head and Shoulders” pattern. After all, the price showed a maximum and now the second maximum is already lower than the previous one, as soon as the price renews the minimum, we can say that the downward movement of the pair will continue. Moving averages indicate a short-term bearish trend for the pair. Dream prices have broken up the area between the signal lines, which indicates pressure from buyers of the European currency and a potential continuation of the asset quotes growth from the current levels. At the time of the publication of the forecast, the Euro/US Dollar rate is 1.1329. As part of the Forex forecast for January 6, 2022, we should expect an attempt to continue the development of a bullish price correction and a test of the resistance level, which is located on the pair near the 1.1355 area. Further, a rebound down 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 1.1205.
EUR/USD Forecast Euro Dollar January 6, 2022
An additional signal in favor of falling EUR/USD quotes will be a rebound from the upper border of the “Head and Shoulders” reversal pattern. The second signal will be a rebound from the resistance line on the relative strength index (RSI). Cancellation of the option of falling quotations of the Euro/Dollar currency pair will be a strong growth and a breakdown at the level of 1.1445. This will indicate a breakdown of resistance and a continued rise to the area at the level of 1.1655. Expect confirmation of a fall in the EUR/USD currency pair with a breakdown of the support level and closing prices below 1.1235, which will indicate a breakdown of the lower border of the bullish correction channel, as well as the beginning of the “Head and Shoulders” reversal pattern.
Among the important news from Europe and the United States that may have an impact on the EUR/USD pair, it is worth highlighting: ISM United States Non-Manufacturing Purchasing Managers Index (PMI).
EUR/USD Forecast Euro Dollar January 6, 2022 suggests the development of a bullish correction and a test of the resistance area near the level of 1.1355. Where should we consider a price rebound downward and an attempt to continue the fall of the currency pair in the market to an area below the level of 1.1205. In favor of reducing the instrument in the Forex market, a test of the downward trend line on the relative strength index (RSI) will come out. Cancellation of the EUR/USD pair fall option will be a strong growth in quotations and a breakdown at the level of 1.1445. 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 1.1655.
