Currency pair Euro/Dollar EUR/USD continues to move as part of growth and a bullish channel. The potential for the formation of the “Diverging Formation” pattern remains. Moving averages indicate the presence of a short-term bullish trend for the pair. Prices have gone up from the area between the signal lines, which indicates pressure from buyers of the European currency and a potential continuation of the growth of asset quotes already from current levels. At the time of the publication of the forecast, the EUR/USD exchange rate is 1.0896. As part of the Forex forecast for January 27, 2023, we should expect an attempt to develop a price increase and test the resistance level, which is located on the pair near the area of 1.0945. Further, a rebound in prices 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 1.0715.
EUR/USD Forecast January 27, 2023
An additional signal in favor of lowering EUR/USD quotes tomorrow will be a rebound from the upper border of the “Diverging Formation” pattern. The second signal in favor of this option will be a rebound from the resistance line on the relative strength index (RSI). Cancellation of the option of falling quotes of the Euro/Dollar currency pair will be a strong growth and a breakdown of the level of 1.1055. This will indicate a breakdown of the resistance area and continued growth to the area at the level of 1.1295. It is worth waiting for confirmation of the fall in the EUR/USD currency pair with a breakdown of the support level and closing the price below the level of 1.0825.
Despite US GDP growth of 3.2% in the December report, consumer spending on goods and services showed an increase to 2.5% from 2.3%, construction companies are also reducing investment. Now the GDP indicator is at the level of 2.9%, imports have significantly decreased. Yet investors still see the risks of an inevitable review as rising rates from the Fed have a strong impact on investment in the country’s business, consumer demand and the housing market.
EUR/USD Forecast January 27, 2023 suggests an attempt to develop a correction of the pair and test the resistance area near the level of 1.0945. Where should we consider the price bounce down and an attempt to continue the fall of the currency pair in the market to the area below the level of 1.0715. The test of the trend line on the Relative Strength Index (RSI) will come out in favor of the instrument’s decline in the Forex market. Cancellation of the option of falling the EUR/USD pair will be a strong growth in quotes and a breakdown of the level of 1.1055. This will indicate a breakdown of the resistance area and continued growth of the Forex currency pair to the area above the level of 1.1295.
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