Forecast for EUR/USD on August 26, 2020

EUR/USD

Yesterday's US economic data did not provide much help to the market; sales of new homes increased to 901,000 in July from 791,000 a month earlier, business activity in the manufacturing sector of Richmond for the current month increased from 10 to 18 points, but the Dow Jones lost -0.21%, while the S&P 500 added 0.36%, which was affected by the negative situation in the commodity sector. At the same time, the Conference Board's US Consumer Confidence index for August fell from 91.7 to 84.8. The euro, buoyed by the growth of sentiment in the German IFO business circles from 90.4 to 92.6, closed the day by gaining 47 points, which was not difficult to do from the technical side, since it is located in the free-roaming zone of 1.1710-1.1905. The daily chart shows that the signal line of the Marlin oscillator is located in the zero line - the border, that is, the situation is neutral.

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The price is on the MACD line and Marlin is also exactly on the neutral line on the four-hour chart. If today's data on orders for durable goods in the United States does not fail, then it is more likely that the neutrality of the situation will shift towards the euro's decline. The forecast for Durable Goods Orders for July is 4.4%. We are waiting for developments. The main scenario is still falling in order for the euro to reach the lower limit of the 1.1710 range.

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