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Forecast for EUR/USD on January 18, 2021

EUR/USD

Today and tomorrow the Italian parliament decides on the confidence of the government to Prime Minister Giuseppe Conte in connection with the split in the ruling coalition. If Conte will say "no", then the euro will naturally accelerate the fall, but if the vote is received, then the euro will have no reason to grow, because the Dutch cabinet of ministers resigned on the 15th.

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The euro fell 73 points last Friday, leaving the range of short-term consolidation at 1.2132/77. And now, with the consolidation below the MACD line (1.2050), the price will open the prospect of a medium-term decline. The targets of the downward movement are defined: 1.1915, 1.1830, 1.1760, 1.1565-1.1600.

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The four-hour chart shows that the signal line of the Marlin oscillator has left the consolidation area to the downside. You should wait for the price to settle below the 1.2050 level.

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