Forecast for EUR/USD on August 19, 2020

EUR/USD

The euro finally came to terms regarding its direction on Tuesday, following two weeks of being in the uncertain zone of 1.1712-1.1905. It chose an upward direction against the background of established risk sentiment. The US stock index S&P 500 broke the pre-crisis high, setting a historical record of 3395. Restrictive stops of euro sellers at levels from 1.1900 were closed, the single currency received an additional boost for growth. Now its nearest target is the 1.2040/55 range, then the 1.2155 level – the March 1, 2018 low. The Marlin oscillator sluggishly moves up, which on the technical side preserves the probability of forming a double divergence after the price rises to 1.2155.

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The price develops above the balance and MACD lines on the four-hour chart, the Marlin slowly moves up, and the local growth keeps the trend. We are waiting for the euro in the area of the first target of 1.2040/55.

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