The Euro Dollar EUR/USD forex currency pair ends the trading week near the 1.2130 area. The pair continues to move within the framework of a bullish correction and the formation of a large “Head and Shoulders” reversal pattern, which can send the pair to the level of 1.1005. Moving averages indicate the presence of a 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 likely continuation of growth from the current levels. At the moment, we should expect an attempt to develop a bullish correction and test the resistance area near the level of 1.2165. Where is the expected rebound and the continuation of the fall of the Euro Dollar. The potential target of the decline is the area below the level of 1.1085.
EUR/USD forex forecast for the week of May 10-14, 2021
An additional signal in favor of the fall of the EUR/USD currency pair on Forex will be a test of the broken trend line on the relative strength indicator. The second signal will be a rebound from the upper border of the ”Head and Shoulders" reversal pattern. The cancellation of the option of reducing the quotes of the Euro-Dollar pair in the current trading week of May 10-14, 2021, will be a strong growth and a breakdown of the level of 1.2375. This will indicate the breakdown of the resistance area and the continuation of the pair's growth in the area above the level of 1.2775. With the breakdown of the support area and the closing of quotes below the level of 1.1545, which will indicate the completion of the formation of the reversal model, as well as the breakdown of the ”Neck” line.
EUR/USD forex forecast for the week of May 10-14, 2021
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: The ZEW Germany Economic Sentiment Indicator, the number of open vacancies in the US labor market (United States JOLTS Job Openings), Retail sales in the US m/m (United States Retail Sales m/m).
Thus, the EUR/USD forecast for the week of May 10-14, 2021 suggests an attempt to correct and test the resistance area near the level of 1.2165. Where should we expect the pair to continue falling to the area below the level of 1.1085? An additional signal in favor of a decline will be a test of the resistance line on the relative strength indicator. The cancellation of the Euro-Dollar fall option will be a strong growth and a breakdown of the level of 1.2375. In this case, we should expect the pair to continue to rise with a potential target at 1.2775.