Currency pair Euro/Dollar EUR/USD continues to move as part of the growth and the ascending channel. A bearish ”Wolfe Wave” pattern is also forming here. Moving averages indicate a short-term bullish trend for the pair. Prices pushed up from the area between the signal lines, which indicates pressure from the sellers of the European currency and a potential continuation of the decline from the current levels. At the time of the publication of the forecast, the Euro/US Dollar rate is 1.2336. As part of the Forex forecast for January 7, 2021, we should expect an attempt to develop growth and test the resistance level near the 1.2375 area. 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 1.2175.
EUR/USD Forecast Euro Dollar January 7, 2021
An additional signal in favor of reducing the EUR/USD quotes will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the ascending channel. Cancellation of the option to reduce the quotations of the Euro/Dollar currency pair will be a strong growth and a breakdown of the level of 1.2405. This will indicate a breakdown of the resistance area and a continued rise to the area at 1.2615. It is worth waiting for confirmation of a fall in the EUR/USD currency pair with the breakdown of the support area and closing prices below 1.2225, which will indicate a breakdown of the lower border of the ascending channel.
Among the important news from Europe and the United States, which may have an impact on the EUR/USD pair, it is worth highlighting: European Union Retail Sales m/m, a serious drop is expected from the level of 1.5% to the level -0.5%, which may put pressure on the European currency rate. The ISM United States Non-Manufacturing Purchasing Managers Index (PMI) expects the index to drop from 55.9 to 52.9, in which case pressure on the US dollar may increase.
EUR/USD Forecast Euro Dollar January 7, 2021 assumes the development of a correction and a test of the resistance area near the level of 1.2375. Where can we expect a rebound and an attempt to continue the pair’s fall to the area below the level of 1.2175. 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 1.2405. 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 1.2615.
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