Forecast for EUR/USD on April 7, 2020

EUR/USD

On Monday, in the absence of bright news, the euro traded in the range of 65 points, closing the day with a decline of 11 points. Trading volumes were at the same level as on Friday, when the euro fell by 50 points (on the stunning bad data on employment in the US), which indicates the closing of sales and the likely beginning of corrective growth. The Marlin oscillator on the daily scale shows the intention to turn around.

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The potential for correction is the line of the embedded price channel at 1.0954. It is possible for the euro to continue to decline with a probability of 40%, here the goal is to support the price channel at 1.0625.

Let's look at the details on a smaller scale chart.

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The price is in the consolidation range of 1.0768-1.0836 on H4. When the price goes above the upper limit of this range, it opens the way to the target range of 1.0900/27 (extremes of April 1 and March 31), and only after overcoming it, the price can reach the goal of 1.0954. Leaving the price below 1.0768 opens a bearish target of 1.0625.

Indicator readings on H4 are already moving into the bullish phase – the price has overcome the resistance of the MACD line, the Marlin oscillator is trying to move into the zone of positive values, having previously formed a weak convergence.

The material has been provided by InstaForex Company - www.instaforex.com