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Forecast for EUR/USD on 1/20/2020

EUR/USD

Good US construction performance came out on Friday last week: 1.608 million y/y were pledged in December against new expectations of 1.38 million y/y - this is the highest figure since January 2007; 1.42 million were issued for new construction permits y/y (forecast was 1.47 million). Industrial production failed - the December decline was -0.3% versus the expected 0.0%, but optimistic investors found positive in the index structure - production in the manufacturing industry increased by 0.2% against the forecast of -0.2%. As a result, the dollar index grew by 0.33% while the euro lost 45 points.

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On the daily chart of the pair, the signal line of the Marlin oscillator penetrated into the negative trend zone. An important support is the 1.1074 level - the area of the Fibonacci line of 123.6% and the line of MACD. Overcoming support will open an equally important goal at 1.1034 - an embedded price channel line, overcoming of which, in turn, opens the way for pulling down the euro in a medium-term..

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On the four-hour chart, the MACD blue indicator line is turning down, the price is also under the line of balance. Marlin consolidated in the decline zone.

It is a national holiday in the US today, and there are also no important events expected in the euro area. A calm day (consolidation) is expected on the market before tomorrow's attempt to overcome technical support (1.1074).

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