Forecast for EUR/USD on August 5, 2020

EUR/USD

The euro made an attempt to rise yesterday by attacking the target level of 1.1806. But the growth occurred with the declining Marlin oscillator on the daily chart, which indicates an imminent price reversal. In fact, we can speak with relative firmness about a reversal with a movement to the lower target level of 1.1620 after the price consolidates below 1.1806.

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A price consolidation above this level may become the first sign of an alternative scenario unfolding with an increase in the target range of 1.2040/55. The signal level for such development of events is the July 31 high at the price of 1.1909. The target range may not be reached, but here the main reference point will be the Marlin oscillator, which will form a double divergence with the price.

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The price broke above both indicator lines on the four-hour chart - the red balance line and the blue MACD line. The Marlin oscillator has slightly penetrated the zone of positive values, but in conjunction with the price behavior, an increasing mood is created. It is possible for the euro to grow without breaking the main downtrend scenario to the reference level of 1.1909. At the moment, we are still waiting for the price to move below the indicator lines and the restoration of the downward movement with the first target at 1.1620.

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