Forecast for EUR/USD on December 2, 2020

EUR/USD

The euro jumped 144 points on Tuesday. Formal reasons cited by the media: the divergence in PMI indices between the US and Europe and the resumption of congressional talks on the second aid package worth $908 billion occurred in the evening, but the euro grew in the morning. It just means that investors do not believe in a hard Brexit and are risking until the last moment.

Business activity in the manufacturing sector of the eurozone in the final estimate for November was revised up from 53.6 points to 53.8, the US ISM Manufacturing PMI fell from 59.3 to 57.5.

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The daily chart shows that the price went beyond the embedded price channel line and the September high (1.2011). Now the price is facing the 1.2117 target. However, this level will not be reached today, speculative growth rarely lasts without stopping. Especially now, when you can look around at the 1.2011 support. This stop is also needed to dilute the Marlin oscillator from the oversold zone, so that it can then grow.

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The four-hour chart shows that Marlin looks high in the oversold zone, waiting for the price to slightly pull back. The September high at 1.2011 provides support.

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