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Forecast for EUR/USD on January 8, 2020

EUR/USD

On Tuesday, the euro found the strength to overcome support for the Fibonacci level of 110.05 on a daily chart without a long delay. Retail sales in the euro area increased by 1.0% in November against expectations of 0.6%, the base CPI in December stayed at 1.3% YOY, but the dollar strengthened against most currencies due to geopolitical tensions in the Middle East. Also, the US trade balance improved from -46.9 billion to -43.1 billion in November. Business activity of ISM Non-Manufacturing increased from 53.9 to 55.0 in December. The volume of factory orders decreased by 0.7% in November, but was stopped by the previously released November industrial production by +1.1%.

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The signal line of the Marlin oscillator, as expected, went below the lower boundary of its own channel. The way to support the embedded price channel line at 1.1045 is open.

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On a four-hour chart, the price has consolidated below the MACD indicator line, the Marlin oscillator is going down.

Today, the US will show figures for new jobs in the private sector from ADP in December, the forecast of 160 thousand against 67 thousand earlier. We look forward to the euro's decline.

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