FX.co ★ Forecast for EUR/USD on January 23, 2024

EUR/USD

Yesterday, the main thing was that traders saw a higher probability of the Federal Reserve keeping the current interest rate at the March meeting, as the likelihood rose to 58.4%. The speeches of FOMC representatives finally had an effect. As a result, the dollar index increased by 0.08%, and the euro fell by 15 pips.

The price rebound occurred at the intersection point of the balance indicator line with the target level of 1.0905 on the daily timeframe. The local decline is supported by the MACD line around the level of 1.0853 on the same chart. A consolidation below this level will allow the price to move towards 1.0825 and even 1.0730, which is the embedded price channel line and the target level.

A consolidation above 1.0905 will open the way towards the target of 1.1033. This is the main scenario. The signal line of the Marlin oscillator is in a sideways neutral movement.

Tomorrow, the eurozone will publish the Manufacturing PMI for January, and the forecast is 44.8 compared to December's 44.4. The US Manufacturing PMI is also expected to rise, reaching 48.0 compared to 47.9 in December. This likely indicates a recovery in risk appetite.