Forecast for EUR/USD on October 6, 2020

EUR/USD

The euro started the new week with a steady growth, yesterday's rise was 68 points, the price overcame the signal level of 1.1754 and there is a possibility of the MACD line reaching the 1.1895 area on the daily chart.

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The signal line of the Marlin oscillator has entered the growth trend zone. Overcoming this resistance will lead to growth to the upper border of the price channel at 1.1975, but so far there are no prerequisites for this, we still consider the ongoing growth from the decline from September 1 as corrective. We do not even exclude a variant with a false breakout of the signal level (1.1754), due to the only insignificant exit of Marlin into the growth zone and there might be a reversal from the border of the neutral line. Therefore, we recommend that you be extremely careful with your longs. Selling is possible after the price settles below the signal level. Target levels are indicated on the chart: 1.1650, 1.1550.

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Forming a price divergence with the oscillator is starting to take place on the four-hour chart. Since investors are strongly interested in buy positions, we might not complete the divergence and Marlin will continue to grow, but weak buying tendencies may strengthen the formation and a price reversal in the next day. We are waiting for the development of events.

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