19.02.202006:56 Forex Analysis & Reviews: Forecast for EUR/USD on February 19, 2020

EUR/USD

Yesterday, the ZEW Institute's data on business sentiment in the eurozone for February showed a real collapse of the indices: the German ZEW Economic Sentiment fell from 26.7 to 8.7 while expecting a less painful decline to 20.0, the European index dropped from 25.6 to 10.4 against forecast 21.3. According to the results of the day, the euro lost 43 points, and there was a struggle in the range of 40 points during the US session, which may indicate a partial consolidation of investors' profits before today's data on the construction and release of FOMC Fed minutes from the last meeting.

On the daily chart, the Marlin oscillator shows the intention of a reversal up. It probably needs a discharge from the oversold zone.

A double convergence according to Marlin was almost formed on the four-hour chart. Unless a reverse movement forms under the generatrix of the azure line, which on the price chart will correspond to price taking below yesterday's low, then we expect a correctional growth of the euro to the resistance of the Fibonacci level of 161.8% at 1.0840 (daily). The correction potential is about 70 points to the MACD line (1.0875). If the price consolidates below yesterday's low of 1.0786, the price can work out the lower Fibonacci level of 200.0% at 1.0745. But in this case, the oversold spring will contract even more and corrective growth could be more significant.