Forecast for EUR/USD on July 16, 2020

EUR/USD

The euro reached the growth target level of 1.1420 on Wednesday and slightly fell short of the second level of 1.1465, but since we have a target price range of 1.1420/65 in general, the necessary condition for forming a divergence with the Marlin oscillator is met. Only time will tell whether the divergence will take place today, or if the price overcomes 1.1465 with a further increase to 1.1560. A decisive turn down will be signaled by the price moving below the level of 1.1349 – this is the high on June 23.

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The Marlin divergence did not form on the four-hour chart, but instead the signal line of the oscillator created a rectangular range, now the line moves to its lower border, which coincides with the zero line, beyond which the territory of the bears begins.

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Visually, the Marlin signal line can go down from the rectangle at the euro price of 1.1375. The signal level of 1.1349, defined on the daily scale chart, on H4 corresponds to the support of the MACD line, which it is currently striving for.

The price falling to 1.1375 will be a signal for its attack at 1.1349, and a decrease at 1.1349 will open the target at 1.1265 and later 1.195. An increase in the price above 1.1465 can bring the price up to 1.1560.

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