Forecast for EUR/USD on January 6, 2021

EUR/USD

Yesterday, the Bank of China raised the official rate of the yuan to 6.4760, which prevented the dollar from developing an offensive. The change, however, is not significant, a slight correction to the pre-New Year rate, which was 6.5240, that is, by 0.735%. On the euro, the news materialized in the form of a more pronounced double divergence and a weak triple divergence. The 1.2330 target level has been practically fulfilled. The market absorbed this information from China, now we are waiting for the euro to fall to support the MACD line to the 1.2040 area.

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A double price divergence has also formed with the Marlin oscillator on the four-hour chart. A signal for a pronounced fall is when the price settles below the MACD line, below 1.2257.

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