The Euro Dollar EUR/USD forex currency pair continues to move within the fall and the formation of a large reversal pattern ”Head and Fly” on the daily chart of the pair. Moving averages indicate the presence of a short-term bullish trend for the pair. Prices moved up from 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 1.2050. As part of the Forex forecast for May 7, 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 1.2105. 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 1.1775.
EUR/USD Forex forecast for May 7, 2021
An additional signal in favor of falling EUR/USD quotes will be a test of the descending trend line. The second signal will be a rebound from the resistance line on the Relative Strength indicator (RSI). The cancellation of the option of falling quotations of the Euro-Dollar currency pair will be a strong growth and a breakdown of the level of 1.2175. This will indicate the breakdown of the upper model and the continuation of the rise to the area at the level of 1.2345. Expect confirmation of the fall in the EUR/USD currency pair with the breakdown of the support level and the closing of prices below the level of 1.1905.
EUR/USD Forex forecast for May 7, 2021
Among the important news from Europe and the United States that may affect the EUR/USD pair, it is worth highlighting: The Speech of the President of the European Central Bank (ECB) President Lagarde (European Central Bank (ECB) President Lagarde Speech), the change in the number of people employed in the non-agricultural sector of the United States (United States Nonfarm Payrolls).
Thus, the EUR/USD Forex forecast for May 7, 2021 suggests the development of a correction and a test of the resistance area near the level of 1.2105. Where to expect a rebound and an attempt to continue the fall of the pair to the area below the level of 1.1775. In favor of the fall of the currency pair, a trend line test on the relative strength indicator will act. The cancellation of the option of reducing the EUR/USD currency pair will be a strong increase in quotes and a breakdown of the level of 1.2175. This will indicate the breakdown of the resistance area and the continuation of the rise of the currency pair in Forex to the area above the level of 1.2345.