Forecast for EUR/USD on June 18, 2020


Investors moved towards averting risk on Wednesday: the S&P 500 stock index lost 0.36%, the yield of 5-year US government bonds fell from 0.336% to 0.326% this morning, gold slightly grew by 0.02%, the dollar index strengthened by 0.06%, while the euro lost 18 points. The euro has firmly established itself in the range of target levels 1.1195-1.1265 on the daily chart, the signal line of the Marlin oscillator is approaching the border of the bears' territory.


But before Marlin enters this territory, the price can spend some time in the current range, since convergence on the oscillator was almost formed on a smaller, four-hour chart. Correction is possible even with a slight overlap of the upper level (1.1265).


If the price overcomes the lower limit of the 1.1195 range, then a convergence will not form and the price will continue to decline to support the embedded line of the price channel in the area of 1.1120.

In addition, the price could go into an upward correction after reaching the target level of 1.1195. The Marlin convergence will continue.

The material has been provided by InstaForex Company -