The Euro Dollar EUR/USD forex currency pair continues to move within the fall and the formation of the bearish "Wolf Wave" model. Moving averages indicate the presence of a short-term bullish trend for the pair. Prices are again testing the area between the signal lines, which indicates pressure from buyers of the European currency and the potential continuation of the growth of quotations from the current levels. At the time of publication of the forecast, the Euro/US Dollar exchange rate is 1.2204. As part of the Forex forecast for May 25, 2021, we should expect an attempt to develop a bullish correction and a test of the resistance level, which is located on the pair near the area of 1.2225. Next, a rebound down and a continuation of the fall of the Euro-Dollar currency pair. The potential target of such a move on FOREX is the area below the level of 1.1975.
An additional signal in favor of the fall in EUR/USD quotes will be a breakdown of the lower border of the ”Wolf Wave" reversal model. The second signal will be a rebound from the resistance line on the Relative Strength indicator (RSI). The 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 1.2275. This will indicate a breakdown of the upper model and a continuation of the rise to the area at the level of 1.2415. Expect confirmation of the fall in the EUR/USD currency pair with a breakdown of the support level and closing prices below the level of 1.2115, which will indicate a breakdown of the lower limit of the ”Wolf Wave" model.
EUR/USD Euro Dollar forex forecast for May 25, 2021
Among the important news from Europe and the United States that may affect the EUR/USD exchange rate, it is worth highlighting: the European Union Leaders Summit, the Gross Domestic Product (GDP) of Germany q/q (Germany Gross Domestic Product (GDP) q/q), the Business Climate Index in Germany from Ifo (Ifo Germany Business Climate), New home Sales in the United States (United States New Home Sales), the Consumer Confidence Index in the United States from The Conference Board (The Conference Board United States Consumer Confidence Index).
Thus, the EUR/USD Forex forecast for May 25, 2021 suggests the development of a correction and a test of the resistance area near the level of 1.2225. Where to expect a rebound and an attempt to continue the fall of the pair to the area below the level of 1.1975. In favor of the fall of the currency pair, the trend line test on the relative strength indicator will act. The cancellation of the option of reducing the EUR/USD pair will be a strong increase in quotations and a breakdown of the level of 1.2275. This will indicate the breakdown of the resistance area and the continuation of the rise of the currency pair on Forex in the area above the level of 1.2415.