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Forecast for EUR/USD on October 23, 2020

EUR/USD

Yesterday, the euro fully won back the points it gained on Wednesday and now it continues to decline in the Asian session, as the markets hope for a compromise on the second package of economic aid to the US economy. The daily chart shows that the price is supported by the balance indicator line, while the Marlin oscillator maintains its positions in the growth zone. American politicians will have the last opportunity to reach a financial decision. In general, investors are pessimistic about such a "happy ending", but the S&P 500 grew by 0.52%, which shows hope.

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Fundamental factors are currently of primary importance for the exchange rate. Much will be revealed on Monday. From a formal technical standpoint, the price moving below the 1.1754 level spins a wave of decline with the first target at 1.1650. If the price surpasses the signal level of 1.1831, the euro will turn to the 1.1915 level.

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The four-hour chart shows that the price has already overcome the support of the MACD line, while Marlin is in the downward trend zone. This gives some advantage to the downward scenario, but these movements against the backdrop of political events may turn out to be false. In the end, we just have to wait for Monday.

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