FX.co ★ Forecast for EUR/USD on July 21, 2020

EUR/USD

The euro rose by 20 points on Monday, but with the upper shadow it marked the upper limit of the target range of 1.1420/65, which, in fact, created a condition for forming a reversal divergence with the Marlin oscillator. Of course, the euro can continue to grow, but the price needs to overcome 1.1465 for this, then the next goal is the 1.1560 level – the record average level of the January 2018 high and the November 2017 low. In this case, the forming divergence line along the Marlin will become more flat. In the current situation, a downward movement to the target level of 1.1265 is possible if the price goes below the July 16 low, which is also the Fibonacci level of 61.8% on the daily chart (1.1371).

The divergence of the price and the oscillator has already formed on the four-hour chart. This is the first signal of the euro's reversal to the target level of 1.1265 that can take place today. To fully generate the signal, the price should be fixed under the MACD line, below 1.1395. We are waiting for developments.