FX.co ★ Forecast for EUR/USD on January 8, 2021

EUR/USD

Yesterday, against the backdrop of "direct action" by Donald Trump's supporters who stormed the Senate building in the process of approving the results of the presidential elections in the country, government bonds continued to sharply rise in yields and the dollar strengthened. Investors decided to take advantage of the situation and successfully closed early purchases of the euro and began to buy dollars as a promising currency in anticipation of an imminent economic recovery with the coming to power of Biden. The yield on 5-year bonds from Tuesday to Thursday rose from 0.353% to 0.427%.

Thus, the euro did not realize its long-accumulated potential to reach the 1.2414 target. Now the price is likely to break the control level of 1.2215 and move to the MACD line in the 1.2060 area. The Marlin oscillator, after forming a double or triple divergence, shifted into the negative area - into the territory of a downward trend.

The four-hour chart shows that the price broke away from the MACD line this morning, clearly intending to attack 1.2215. Marlin is accelerating to the downside. With overcoming the control-target level, a slight delay with the rise of Marlin (discharge of the oversold indicator) and falling further towards 1.2060, 1.1885 is likely.