Currency pair Euro Dollar EUR/USD completes the trading week near the area of 1.1133. The pair continues to move within the framework of the fall and the descending channel. Moving averages indicate a bearish trend. Prices have gone down from the area between the signal lines, which indicates pressure from sellers of the European currency and a likely continuation of the fall from current levels. At the moment, we should expect an attempt to develop a bullish correction and test the resistance area near the level of 1.1305. Where is the expected rebound and continued fall of the Euro Dollar. The potential target of the decline is the area below the level of 1.0585.
EUR/USD Weekly Forecast January 31 — February 4, 2022
An additional signal in favor of the fall of the EUR/USD currency pair on Forex will be a test of the descending trend line on the relative strength index, another rebound has already taken place. Do not exclude the formation of the “Descending Triangle” pattern on the RSI indicator, the breakdown of this pattern down will be a strong signal for the collapse of the Euro against the US dollar. The second signal will be a rebound from the upper border of the descending channel. Cancellation of the option to reduce the quotes of the Euro/Dollar pair in the current trading week January 31 — February 4, 2022 will be a strong growth and a breakdown of the level of 1.1565. This will indicate a breakdown of the resistance area and continued growth of the pair to the area above the level of 1.1975. With the breakdown of the support area and the closing of quotes below the level of 1.1025, we should expect confirmation of the decline in the pair.
Among the important news from America and Europe in the next trading week that may have an impact on the EUR/USD rate, it is worth highlighting: ISM United States Manufacturing Purchasing Managers Index (PMI), Change in stocks EIA United States Crude Oil Stocks Change, European Central Bank (ECB) Interest Rate Decision, ISM Non-Manufacturing Purchasing Managers Index (ISM) United States Non-Manufacturing Purchasing Managers Index (PMI), United States Nonfarm Payrolls.
EUR/USD Weekly Forecast January 31 — February 4, 2022 suggests an attempt to develop a bullish correction and test the resistance area near the level of 1.1305. Where should we expect the pair to continue falling to the area below the level of 1.0585. 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 1.1565. In this case, we should expect the pair to continue to rise with a potential target at the level of 1.1975.
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