Currency pair Euro/Dollar EUR/USD continues to move within the framework of a slight fall and the beginning of the formation of the “Head and Shoulders” reversal pattern. Moving averages indicate a short-term bullish trend for the pair. However, 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 EUR/USD rate is 1.1735. As part of the Forex forecast for October 29, 2020, we should expect an attempt of a downward correction and a test of the resistance level near the 1.1865 area. Further, the rebound and 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 1.1455.
EUR/USD Forecast Euro Dollar October 29, 2020
An additional signal in favor of falling 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 upper border of the reversal pattern. 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 1.1905. This will indicate a breakdown of the resistance area and a continued rise to the area at the level of 1.2125. Expect confirmation of a fall in the EUR/USD currency pair with the breakdown of the support area and closing prices below 1.1645, which will indicate a breakdown of the lower boundary of the “Head and Shoulders” model.
Among the important news from Europe and the United States that may have an impact on the EUR/USD pair, it is worth highlighting: United States Gross Domestic Product (GDP) q/q, European Union Leaders Summit, European Central Bank (ECB) Interest Rate Decision, European Central Bank (ECB) Monetary Policy Press Conference.
EUR/USD Forecast Euro Dollar October 29, 2020 assumes the development of a correction and a test of the resistance area near the level of 1.1865. Where can we expect a rebound and an attempt to continue the pair’s fall to the area below the level of 1.1455. 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 1.1905. This will indicate a breakdown of the resistance area and continued growth of the currency pair on Forex to the area above the level of 1.2125.
