Forecast for EUR/USD on January 5, 2021

EUR/USD

The market shook on Monday. At high volumes, the euro traded in a range of 80 points (excluding the New Year's gap), but the trend was still growing. It is likely to turn into a decline after the price falls below the December 31 low of 1.2215, afterwards it may fall towards the support of the MACD indicator line on the daily chart (1.2032). The development of such a scenario is facilitated by a double price divergence with the Marlin oscillator.

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The four-hour chart shows that the MACD line stopped the price from falling in the afternoon. The signal line of the Marlin oscillator has moved into the negative area, which is a sign of the price's intent to overcome the support of the MACD line today. Getting the price to settle below this line will automatically coincide with the price transition below the signal level of 1.2215, which will become a confident signal for the euro to move to the nearest target of 1.2032.

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