FX.co ★ Forecast for EUR/USD on February 24, 2020

EUR/USD

The euro gained a little over 60 points on Friday due to higher European PMI and weakened PMI in the US. Manufacturing PMI of the euro area increased from 47.9 to 49.1 in February (forecast 47.4), Services PMI increased from 52.5 to 52.8. In the US, the production indicator fell from 51.9 to 50.8, while in the service sector it weakened from 53.3 to 49.4.

In corrective growth, the price lingered at the Fibonacci level of 161.8%, today in the Asian session the price is developing slightly below it. To continue the growth, the price should go above yesterday's high, in this case, the correction will continue to the Fibonacci level of 138.2% at the price of 1.0898. The Marlin oscillator is in a downward trend within the clear framework of its own channel. In such a situation, a reversal of the signal line from its upper boundary is more likely than continued growth of the indicator and price.

The price is determined with the direction on the MACD line on the four-hour chart. Here, the first sign of a decline will be when the price consolidates below the MACD line, a confirmation of the signal will be the Marlin line going into the zone of negative values, which also corresponds to the price going below Friday's low of 1.0780.

We are waiting for the price to go down below 1.0780 and the euro to fall further to the target range of 1.0650/80.