Currency pair Euro/Dollar EUR/USD continues to move as part of the correction and the formation of a large reversal pattern “Head and Shoulders”. Moving averages indicate a short-term bearish trend for the pair. Prices went down from the area between the signal lines, 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 1.1851. As part of the Forex forecast for September 22, 2020, we should expect an attempt to grow and test the resistance level near the 1.1865 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 1.1425.
EUR/USD Forecast Euro Dollar September 22, 2020
An additional signal in favor of a fall in EUR/USD quotes will be a test of the broken trend line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the “Head and Shoulders” 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 1.1995. This will indicate a breakdown of the resistance area and a continued rise to the area at 1.2265. Expect confirmation of a fall in the EUR/USD currency pair with the breakdown of the support area and closing prices below 1.1655. This scenario will indicate the completion of the formation of the “Head and Shoulders” pattern due to the breakdown of the ”Neckline” and the beginning of its development.
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 Existing Home Sales, Statement by the Chairman of the Federal Reserve System (FRS) Powell (Federal Reserve System (Fed) Chair Powell Testimony).
EUR/USD Forecast Euro Dollar September 22, 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 1.1425. 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 1.1995. 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 1.2265.
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