Currency pair Euro Dollar EUR/USD completes the trading week near the 1.1331 area. The pair continues to move within the sideways correction and the downward channel. The ”Triangle” model is also formed here. Moving averages indicate a bearish trend. Prices went down from the area between the signal lines, which indicates pressure from the sellers of the European currency and the likely continuation of the fall from the current levels. At the moment, we should expect an attempt to develop a bullish correction and a test of the resistance area near the level of 1.1355. Where is the rebound and the continuation of the fall of the Euro/Dollar expected. The potential target of the decline is the area below the level of 1.0745.
EUR/USD Weekly Forecast January 3 — 7, 2022
An additional signal in favor of the fall of the EUR/USD currency pair on Forex will be a test of the downward trend line on the relative strength index (RSI), as we see, there have already been several rebounds from such a line. Perhaps the next test of this line will poison the pair’s chart far down. The second signal will be a rebound from the upper border of the descending channel, as well as from the border of the ”Triangle” pattern. Cancellation of the option to reduce the quotations of the Euro/Dollar pair in the current trading week January 3 — 7, 2022 will be a strong growth and a breakdown of the level of 1.1545. This will indicate a breakdown of the resistance area and continued growth of the pair to the area above the level of 1.1955. With the breakdown of the support area and closing of quotations below the level of 1.1175, we should expect confirmation of a decline in the pair and going beyond this side channel and the beginning of the development of the ”Triangle” pattern.
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: United States JOLTS Job Openings, ADP United States Nonfarm Employment Change, EIA United States Crude Oil Stocks Change, United States Nonfarm Payrolls.
EUR/USD Weekly Forecast January 3 — 7, 2022 suggests an attempt to develop a bullish correction and test the resistance area near the level of 1.1355. Where can we expect the pair to continue falling to the area below the level of 1.0745. An additional signal in favor of a decline will be a test of the resistance line on the relative strength index (RSI). Cancellation of the option to drop the Euro/Dollar will be a strong growth and a breakdown of the level of 1.1545. In this case, we should expect the pair to continue to rise with a potential target at the level of 1.1955.
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