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Forecast for EUR/USD on February 4, 2020

EUR/USD

The market returned to normal on Monday. The dollar index rose 0.4% with the British pound as the leader, which collapsed by 209 points due to fears of a disorderly Brexit at the end of the year - according to news agencies, Boris Johnson allegedly does not seek a good deal that can give the rules of the Customs Union, the EU and the WTO, and is developing more stringent conditions for the legal justification of distancing from these rules.

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The euro lost 32 points, breaking the support of the uncertainty range of 1.1065-1.1100. The U-turn came from the MACD line and the line of balance. The Marlin oscillator turned down without leaving the declining trend zone. The 1.1020 target is open on the support of the embedded price channel line.

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On the four-hour chart, the price still remains in the growth trend - the price is above all indicator lines and Marlin is in the growth zone. To fully consolidate the downward trend, the price needs to gain a foothold under the MACD line, which almost coincides with the target level on the daily chart (taking into account its further decrease). As a result, an aggressive correction is possible from the level of 1.1020.

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