Forecast for EUR/USD on December 21, 2020

EUR/USD

The week started negatively for the financial markets. Over the weekend, negotiations between the EU and the UK on Brexit failed, although the parties say that there is still a hundred things that can be done, the governments of many countries of the world are afraid of the new British strain of coronavirus and are closing borders, the US government is in danger of falling into a financial lockdown, but it (the government) managed to adopt a plan for two days of funding before approving the budget for next year.

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The EUR/USD daily chart shows that a divergence has formed with the Marlin oscillator. The price is bracing for a fall to the support of the price channel line, towards the 1.2040 area, but it still needs to go below the signal level of 1.2175 for this.

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The four-hour chart shows that the downward trend has not strengthened. To do so, the price needs to go below the MACD indicator line, below 1.2200, and the signal line of the Marlin oscillator should move into the area of negative values. Both of these signals can become more successful when the price crosses the signal level of 1.2175.

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