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Forecast for EUR/USD on May 2, 2019

EUR/USD

On Wednesday, ahead of the Fed's announcement on its decision on the rate, and in the first half hour after it, the dollar weakened due to some concerns over the low inflation. But with the speech of Fed Chairman Jerome Powell, the dollar began to strengthen against all markets, as he mentioned that there is no reason to change the rate in any direction, and the slowdown in inflation is caused only by temporary factors. Nothing more was needed from Powell, he emphasized the central bank's independence from the pressure of the White House, which required lowering the rate. As a result, the euro closed the day lower by 20 points.

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On the daily chart, the price returned to the area below the balance and MACD line, while the marlin oscillator remains in the negative zone. On the four-hour chart, the price returned to the area below the MACD line and consolidated under it. The marlin oscillator signal line accelerated downwards. We believe that a new wave of decline has begun. With the overcoming of 1.1155, a target of 1.1075 is opened - the Fibonacci level of 123.6% on the daily chart.

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