EUR/USD
In the morning, the euro continued to decline in previous days, falling by 40 points in the evening, but with the release of disappointing PMI turned up and closed the day in positive territory by 6 points. The index of business activity in the manufacturing sector in the ISM estimate for August fell from 51.2 to 49.1. At the same time, construction costs in July increased by only 0.1% against the forecast of 0.3%. Also, two Fed officials, James Bullard and Eric Rosengren, immediately announced the desired "aggressive" (immediately by 0.5%) preventive lowering of the rate before the impact of the global crisis on the United States.
Convergence began to form on the daily chart on the Marlin oscillator, this is a sign of a deep correction, as an option, by 1.1160 - to the magnetic point of coincidence of the Fibonacci level of 110.0%, the price channel line and the MACD indicator line. But first, the price needs to gain a foothold over the low of August 1, 1.1027.
On the four-hour chart, the level of 1.1027 coincides with the resistance of the MACD line. It is possible that the price will not be able to overcome this resistance. In this case, convergence on daily will not form and the Marlin signal line will resume decline.
So, we are waiting for the development of the current neutral situation. The euro's decline against yesterday's low again opens the target of 1.0840 - the area of the Fibonacci level of 161.8% and the price channel line marked on the daily chart.
The material has been provided by InstaForex Company - www.instaforex.com