EUR/USD
Last Friday, the euro reversed from the correction level of 38.2% of the movement on February 25-March 9 and headed deeper down. The Marlin oscillator is turning down on the daily chart without leaving the downward trend zone. The price is likely to resume its decline towards the target levels 1.1800 and 1.1745.
Regional elections were held over the weekend in Germany in the states of Baden-Wurttemberg and Rhineland-Palatinate. For the ruling CDU party (A. Merkel), the results were the worst in its entire history: 23% and 27% by region, respectively. In the fall, federal elections will be held and the question of the chancellor (the shaky prospect of Armin Laschet) will now put pressure on the euro.
The price is still above the MACD indicator line on the four-hour chart. Marlin is in an upward trend. It is unlikely that in the current conditions, the reference level 1.1990 - Friday's high and March 2 low will be overcome. But even if this happens, we do not recommend buying the euro, because the growth in prices against a negative background for the euro before the Federal Reserve meeting on Wednesday looks false. The immediate signal to open a short position will be the price crossing under the control level of 1.1910 - Friday's low.
The material has been provided by InstaForex Company - www.instaforex.com