Forecast for EUR/USD on July 8, 2020

EUR/USD

The euro continued to grow on Tuesday, having previously tested support for the target level of 1.1265 from above. As yesterday, the price is developing above the balance and MACD indicator lines on the daily chart, but the Marlin oscillator has not been able to move into the positive (growing) trend zone.

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The euro's growth is risky not only due to the observed excessive risk appetites, but also from a technical aspect – the euro increasing towards the target levels of 1.1420 and 1.1465 will form a reversal divergence on the Marlin oscillator, followed by a medium-term decline.

The growing scenario is already at risk of failure. The Marlin signal line turned from the border of the growth territory. Consolidating the price at 1.1265 can reset the price to the lower support of 1.195, which will automatically move the price under the balance line, and this is already a shift in the interests of players to further pull down the euro and overcome 1.195, opening the way to 1.1100.

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The euro's reversal from yesterday (the low of the day) occurred from the balance line on the four-hour chart and synchronously with this, the signal line of the Marlin oscillator turned from the border with the territory of the downward movement up. At the moment, the Marlin line shows the intention to turn around from this border. Consolidating the price under the support of 1.1265, of course, will force the Marlin to gain a foothold under its own border in the negative trend zone.

So, a rise in the price above 1.1300 will allow the price to continue growing to 1.1420, a consolidation under 1.1265 opens the way to a fall to 1.195.

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