Currency pair Euro/Dollar EUR/USD continues to move in the framework of the fall and the downward channel. Moving averages indicate the presence of a short-term bearish trend for the pair. Prices pierced the area between the signal lines down, indicating pressure from sellers of European currency. At the time of the publication of the forecast, the euro/dollar rate is 1.0808. As part of the Forex forecast for May 7, 2020, we should expect an attempt to develop a correction and test the resistance level near the area of 1.0865. Further, the rebound and continued fall of the Euro/Dollar currency pair. The potential target of this movement on FOREX is the area below the level of 1.0645.
EUR/USD Forecast Euro Dollar May 7, 2020
An additional signal in favor of the growth of 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 boundary of the downward channel. Cancellation of the option of falling quotes of the Euro/Dollar currency pair will be a strong growth in the exchange rate and a breakdown of the level of 1.0925. This will indicate a breakdown of the resistance area and continued rise to the area at the level of 1.1045. Expect confirmation of a decrease in the EUR/USD currency pair with the breakdown of the support area and closing of prices below the level of 1.0735.
Among the important news from Europe and America that may affect the EUR/USD pair, it is worth highlighting: European Central Bank (ECB) President Lagarde Speech.
EUR/USD Forecast Euro Dollar May 7, 2020 implies the development of a correction and test of the resistance area near the level of 1.0865. Where can we expect a rebound and an attempt to continue the fall of the pair in the area below the level of 1.0645. 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 1.0925. This will indicate a breakdown of resistance and the continuation of the rise of the currency pair on Forex to the area above the level of 1.1045.
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