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Forecast for EUR/USD on February 20, 2019

EUR/USD

European economic indicators, released on Tuesday, turned out to be worse than expectations, the market worked with it, but with the opening of the US session, Loretta Mester's comments on the economic slowdown and the British pound's growth on expectations of today's meeting between Theresa May and Jean-Claude Juncker, euro optimism took over.

In the European session, the euro made a false move - punctured the signal level of 1.1290, but did not consolidate below it and soared up sharply. Even the signal line of the oscillator Marlin did not have time to touch the border with the territory of decline. As a result, the price consolidated above the Krusenstern line of a four-hour scale, having reached the resistance of the trend line of the downward price channel of the lower scale.

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Now, the target for the price is 1.1407 - the Fibonacci retracement level of 61.8% of the decline line of January 31. But in front of it is the resistance zone of 1.1350-73, the upper limit of which is the Krusenstern line on the daily scale, which coincides with the Fibonacci level of 50.0%. Now the Marlin indicator of the four-hour scale attracts a lot of attention - if technical divergence forms a way to 1.1407, then the price might move downwards.

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