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Forecast for EUR/USD on January 28, 2020

EUR/USD

Unexpectedly weak data on new home sales in the US came out on Monday - the December report showed only 694 thousand against the forecast of 730 thousand, November data was revised down from 719 thousand to 697 thousand. Against the backdrop of general fears of the Chinese coronavirus, the stock index S&P 500 decreased by -1.57%, yield on 10-year US government bonds fell from Friday 1.8686% to 1.612%. The dollar is now strengthening as a safe haven currency. The euro fell by six points.

Today, US data has a second chance to appear at its best: the forecast for durable goods orders for December is 1.2%, the Conference Board consumer confidence index for January is expected to grow from 126.5 to 128.2 points.

analytics5e2fb43273f8d.png

On the daily chart, the price consolidated below the blue line of the price channel, the path to the target 1.0986 at the Fibonacci level of 138.2% is free. Overcoming the level opens the second target of 1.0925 - the lows of September 9 and 12 of last year.

analytics5e2fb4488913c.png

On the H4 chart, the growing Marlin indicator does not cause any concern so far, without the risk of a price growth, it can rise to the neutral line, which corresponds to a price increase to about 1.1038 or a little higher.

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