Yesterday, the euro continued to decline despite the rising indicators on the daily and four-hour time frames. On the daily chart, the signal line of the Marlin oscillator is moving in a slightly upward sideways trend within its own rising channel.
This may end with the fact that upon reaching the target level of 1.1705, or even without reaching the level, the price may sharply rise as a correction from the entire movement from May 25, approximately to the 1.1925 area, which will reach 38.2% of the entire two-month fall. This option may well fit into the market's possible reaction to the European Central Bank meeting on Thursday, at which a more precise date or conditions for the rate hike will be determined.
But the Marlin may not withstand the tension, it will exit the channel down, and then the price will go lower, to the target level of 1.1640. Such an option is also possible at the ECB meeting, although it is less likely.
On the four-hour chart, the price is still being pressed by the convergence with the Marlin oscillator; there may be a local correction to the MACD line in the 1.1822 area. But it can also be a wedge with Marlin coming out of it to the downside. Nevertheless, in all respects, it is still a downward trend, so we expect the price to continue falling. In trading, it is still recommended to slightly reduce the risk and sell euros with a reduced lot. The goal is 1.1705.
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