The euro has fallen back towards the 1.1400 support level after buyers failed to trigger the bullish inverted head and shoulders pattern this morning. However, will the pair continue the downward movements? What does the following 20 August EURUSD Technical Forecast reveal?
20 August, OctaFX – The euro was little moved today as the Greek bailout came to an end. In 2016, the country was rescued by the European Union and the IMF with more than $360 billion. These funds have helped the country stabilize but it is not out of the woods yet.
A recent report found that a third of its citizens are in poverty and the government has promised to reduce its fiscal spending.
There are however concerns about Italy. It has the biggest debt to GDP ratio and the plans of the new government are expected to increase deficits.
20 August EURUSD Technical Forecast
On Wednesday last week, the EUR/USD pair reached a weekly low of 1.1300. Since then, the pair has been moving higher and today, it reached an intraday high of 1.1445. This was the highest level in almost two weeks.
The pair’s ADX is currently at 32 and its price is in the middle band of the Bollinger Band.
The price is also in line with the 25 and 15-day Exponential Moving Average (EMA). The current trend seems weak, which means that the pair is likely to continue the downward movements.
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