Currency pair Euro/Dollar EUR/USD continues to move as part of the fall and the downward channel. Moving averages indicate a short-term bearish trend for the pair. Prices broke through the area between the signal lines downward, which indicates pressure from the sellers of the European currency and a potential continuation of the fall from the current levels. At the time of the publication of the forecast, the Euro/US Dollar rate is 1.1701. There is the potential for a head and shoulders pattern to be molded in favor of a continued fall. As part of the Forex forecast for October 16, 2020, we should expect an attempt to grow and test the resistance level near the 1.1735 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 1.1535.
EUR/USD Forecast Euro Dollar October 16, 2020
An additional signal in favor of a fall in EUR/USD quotes will be a test of the downward trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the ascending channel, which the bears have confidently broken down. 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 1.1855. This will indicate a breakdown of the resistance area and a continuation of the rise to the area at the level of 1.2005. Expect confirmation of a fall in the EUR/USD currency pair with the breakdown of the support area and closing prices below 1.1655.
Among the important news from Europe and the United States that may have an impact on the EUR/USD pair, it is worth highlighting: the European Union Leaders Summit, United States Retail Sales m/m.
EUR/USD Forecast Euro Dollar October 16, 2020 assumes the development of a correction and a test of the resistance area near the level of 1.1735. Where can we expect a rebound and an attempt to continue the pair’s fall to the area below the level of 1.1535. 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 fall option will be a strong growth and a breakdown of the level of 1.1855. This will indicate a breakdown of resistance and a continuation of the rise of the currency pair on Forex to the area above the level of 1.2005.
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