Currency pair Euro/Dollar EUR/USD continues to move as part of the fall and the formation of a large reversal pattern “Head and Shoulders” on the daily chart of the pair. Moving averages indicate a short-term bullish trend for the pair. Prices are again testing the area between the signal lines, which indicates pressure from buyers of the European currency and a potential continuation of the growth of quotations from the current levels. At the time of the publication of the forecast, the Euro/US Dollar rate is 1.2010. As part of the Forex forecast for May 7, 2021, we should expect an attempt to develop a bullish correction and a test of the resistance level, which is located on the pair near the area of 1.2075. 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 1.1705.
EUR/USD Forecast Euro Dollar May 7, 2021
An additional signal in favor of falling EUR/USD quotes will be a test of the downward trend line. 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 of the level of 1.2175. This will indicate a breakdown of the upper model and a continued rise to the area at the level of 1.2355. It is worth waiting for confirmation of a fall in the EUR/USD currency pair with the breakdown of the support level and closing prices below 1.1925.
EUR/USD Forecast Euro Dollar May 7, 2021 assumes the development of a correction and a test of the resistance area near the level of 1.2075. Where can we expect a rebound and an attempt to continue the pair’s fall to the area below the level of 1.1705. A test of the trend line on the relative strength index (RSI) will be in favor of the fall of the currency pair. Cancellation of the option to reduce the EUR/USD pair will be a strong growth in quotations and a breakdown of the level of 1.2175. 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 1.2355.
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