Currency pair Euro/Dollar EUR/USD continues to move as part of the growth and the ascending channel. Moving averages indicate a short-term bearish trend for the pair. However, prices have broken through the area between the signal lines upward, which indicates pressure from buyers of the European currency and a potential continuation of growth from the current levels. At the time of the publication of the forecast, the EUR/USD rate is 1.1812. There is potential for the formation of an inverted ”Head and Shoulders” pattern in favor of continued aggressive growth. As part of the Forex forecast for October 21, 2020, we should expect an attempt of a downward correction and a test of the support level near the 1.1765 area. Further, a rebound and continued growth of the Euro/Dollar currency pair. The potential target of such a movement on FOREX is the area above the level of 1.2075.
EUR/USD Forecast Euro Dollar October 21, 2020
An additional signal in favor of raising the EUR/USD quotes will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the ascending channel. Cancellation of the growth option for the Euro/Dollar currency pair will be a fall and a breakdown of the level of 1.1605. This will indicate a breakdown of the resistance area and a continued rise to the area at the level of 1.1375. Expect confirmation of growth in the EUR/USD currency pair with the breakdown of the resistance area and closing prices above the level of 1.1895.
Among the important news from Europe and the United States, which may have an impact on the EUR/USD pair, it is worth highlighting: Speech by the President of the European Central Bank (ECB) President Lagarde Speech, EIA United States Crude Oil Stocks Change.
EUR/USD Forecast Euro Dollar October 21, 2020 assumes the development of a correction and a test of the support area near the level of 1.1765. Where can we expect a rebound and an attempt to continue the growth of the pair to the area above the level of 1.2075. A test of the trend line on the relative strength index (RSI) will be in favor of raising the currency pair. Cancellation of the EUR/USD growth option will be a fall and a breakdown of the level of 1.1605. This will indicate a breakdown of support and a continuation of the fall of the currency pair on Forex to the area below the level of 1.1375.
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