Forecast for EUR/USD on August 4, 2020

EUR/USD

The euro continues to develop a downward movement towards the first target of 1.1620. Yesterday, the price fell by 85 points, but it eventually ended the day by losing 17 points, which was partly due to worse-than-expected construction costs in the United States - the June indicator showed a decrease of 0.7% against expectations of a rise of 1.0 % and -1.7% in May. Factory orders for June will be released today - forecast 5.1% against 8.0% in May. The dollar has an opportunity to strengthen its positions. US President Donald Trump said that the coronavirus epidemic is declining in the United States. Indeed, the decline in new infections in the United States per day was 23%, and the number of deaths became the lowest over the past three weeks.

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The price consolidated below the MACD indicator line (blue) and below the balance line (red), the Marlin oscillator is in the territory of negative values, the situation is completely decreasing at this timeframe. We are waiting for the price to decline to the first target level of 1.1620. Overcoming the level will allow the price to decline to the second target of 1.1490.

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