The Euro Dollar EUR/USD currency pair completes the trading week near the 1.1758 area. The pair continues to move within the framework of the correction and the beginning of the development of the large “Head and Shoulders” reversal pattern. At the moment, we should expect an attempt to develop a bullish correction and a test of the resistance area near the 1.1825 level. Where is expected the recovery and the continued fall of the Euro Dollar. The potential target of the decline is the area below the 1.0875 level.
An additional signal in favor of the EUR/USD currency pair falling on the Forex will be a test of the falling trend line in the Relative Strength Index (RSI), as we see, there have already been several rebounds from this line. The second signal will be a rebound from the neckline of the ”Head and Shoulders” reversal pattern. The cancellation of the option to reduce the price of the Euro / Dollar in the current trading week from 30th August to 3rd September 2021 will be a strong growth and break of 1.2265 level. This will indicate a collapse of the resistance area and continued growth of the pair to an area above the 1.2655 level. With the break of the support area and closing prices below the level of 1.1525.
Among the important news from America and Europe in the next week of trading, which may impact the EUR / USD price, it is worth mentioning: United States Pending Home Sales m / m, The Conference Board United States Consumer Confidence Index, EIA Change in stocks US Crude Oil, US Non-Agricultural Payroll, ISM US Non-Manufactured Purchasing Managers Index (PMI).
The weekly EUR/USD forecast and analysis suggests an attempt to correct and test the resistance area near the 1.1825 level. Where we can expect the pair to continue falling to an area below the 1.0875 level. An additional sign in favor of a decline will be a test of the resistance line on the Relative Strength Index (RSI). The cancellation of the Euro / Dollar drop option will represent a strong growth and break the 1.2265 level. In this case, we should expect the pair to continue rising with a potential target at the 1.2655 level
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