Forecast for EUR/USD on August 20, 2020
It is very likely that the euro’s exit from the 1.1712-1.1905 range on Wednesday and Thursday turned out to be false. The price’s fall from yesterday overshadowed the previous two-day growth. According to Marlin, a double divergence formed with the price, more precisely, two divergences in a row – a flatter one and immediately after it a steeper one, and a double one.
Now the price will try to get out of the specified range downwards with a further target of reaching the 1.1620 level. The MACD line is approaching it to strengthen this level. Accordingly, settling the price below it (1.1620) triggers a scenario of a medium-term fall in the euro.
The price settled under the MACD line on the four-chart. The Marlin oscillator is in its lower half, in a downward trend zone. We are waiting for the price to go down from the 1.1712-1.1905 range within two or three days.
Taking into account that the 1.1712-1.1905 accumulation range in its current form is a free-roaming range, short-term exits of the price above the MACD line are possible. The approximate area is highlighted in a bluish color.
The material has been provided by InstaForex Company – www.instaforex.com