Forecast for EUR/USD on August 6, 2020

EUR/USD

The euro reached a July 31 high on Wednesday, which is also a signal level for continued growth in the 1.2040/55 range. But this scenario - an increase in the price after breaking above the signal level, is complicated by the presence of a reversal divergence with the Marlin oscillator - it could turn double, that is, the signal line will touch the generating line until the price reaches the target range, after which a reversal will occur.

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But at the moment, Marlin is already slightly moving down. The probability of the price dropping under the 1.1806 level with a subsequent movement to 1.1620 is higher here.

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The situation is increasing on the four-hour chart - the price is above both indicator lines, Marlin is in no hurry with a reversal. Investors' expectations are clear - after yesterday's weak data on employment in the private sector, investors are waiting for Friday's non-farms for July. The latest ADP Nonfarm Employment Change reached 167,000. In the non-agricultural sector, 1,550,000 jobs are expected to be created.

So, before the release of tomorrow's key indicators for employment in the US, the sideways movement of the euro is likely in the range of 1.1806-1.1909.

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