FX.co ★ Forecast for EUR/USD on January 18, 2023

Yesterday, the euro closed the day lower, with an attempt to enter the target range of 1.0758/87. Trading volumes were slightly above the average. This does not mean that big players have already closed their long positions, but it suggests that their partial repositioning is likely.

There is still a probability of forming an updated price divergence with the Marlin oscillator on the daily chart. But with the signal line of the oscillator moving below the zero line, and once the price settles under 1.0758, this probability will be neutralized. The nearest target is 1.0660, followed by 1.0595. The MACD line is approaching 1.0595, accordingly, crossing this support will be the key point in breaking the uptrend. The price has formed a standard divergence with the oscillator.

On the four-hour chart, the Marlin has settled in the area of the downtrend, the price has settled under the balance indicator line (red sliding), indicating a shift into a downtrend. Moving the price under the lower limit of the support range of 1.0758/87, where the MACD line is approaching, will inspire the bears to cross the lower supports as well.