The currency pair EUR/USD completes the trading week near the area of 1.1004 and continues to move as part of the correction and the formation of a large “Double Top” reversal pattern. Moving averages indicate a bullish trend. Prices have broken through the area between the signal lines up, which indicates pressure from buyers of the European currency and a likely continuation of growth already from current levels. At the moment, we should expect an attempt to develop a bullish correction of quotes and a test of the resistance area near the level of 1.1065. Where is the expected rebound down and the continuation of the fall of the Euro Dollar. The potential target of the decline is the area below the level of 1.0075.
EUR/USD Forecast Weekly Forecast May 1 — 5, 2023
An additional signal in favor of a decrease in the EUR/USD currency pair on Forex 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 descending channel. Cancellation of the option of falling quotes of the Euro/Dollar pair in the current trading week May 1 — 5, 2023 will be a strong growth and a breakdown of the level of 1.1355. This will indicate a breakdown of the resistance area and continued growth of the pair to the area above the level of 1.1695. With the breakdown of the support area and the closing of quotes below the level of 1.0725, which will indicate a breakdown of the lower boundary of the bullish correction channel and the beginning of the “Double Top” model with targets below.
Among the important news from America and Europe in the next trading week, which may have an impact on the EUR/USD rate, it is worth highlighting: EIA United States Crude Oil Stocks Change), Federal Reserve System (Fed) Interest Rate Decision, Federal Open Market Committee (FOMC) Press Conference Conference), European Central Bank (ECB) Interest Rate Decision, European Central Bank (ECB) Monetary Policy Press Conference, United States Nonfarm Payrolls.
EUR/USD Forecast Weekly Forecast May 1 — 5, 2023 suggests an attempt to develop a correction and test the resistance area near the level of 1.1065. Where should we expect the pair to continue falling in the Forex market to the area below the level of 1.0075. An additional signal in favor of the decline will be a test of the resistance line on the relative strength index (RSI). Cancellation of the fall option for the Euro/Dollar will be a strong growth and a breakdown of the level of 1.1355. In this case, we should expect the pair to continue to rise with a potential target at the level of 1.1695.
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