Forecast for EUR/USD on July 29, 2020

EUR/USD

The euro dropped 34 points yesterday. This decline was timely for the divergence forming with the Marlin Oscillator. But the upside potential remains, the 1.1804 target at the border of the global price channel can still be reached, which began in July 2008. The level of 61.8% correction of the fall branch from February 2018 to March 2020 also lies here. The level is marked 38.2% on the chart as the Fibonacci grid is inverted to determine the reaction levels of the expected long-term decline. Whether the divergence will finally form or the price prefers growth, this will become known after the Federal Reserve announces its decision on monetary policy today.

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Marlin is still in an upward trend zone on the four-hour chart. Its advanced decline indicates the intention to move into the bears' zone, which will show the leading direction of the price. But a stronger and more reliable indication for a further decline will be the price consolidating below the 1.1620 level, which will also become a consolidation below the MACD indicator line. In this case, the euro will be aiming for 1.1490.

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