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Forex Analysis & Reviews: Forecast for EUR/USD on January 13, 2025
As anticipated, U.S. employment data exceeded expectations, leading to a 0.44% strengthening of the dollar index, while the euro declined by 52 pips.
The price has broken through the intermediate level at 1.0250; however, a divergence with the Marlin oscillator is beginning to form on the daily chart. This indicates that the support level at 1.0135 may only be reached after breaking Friday's low of 1.0214. The situation for bears is further complicated by the fact that Friday's price action accurately tested the embedded line of the weekly timeframe price channel.
Further movement toward the next target at 0.9920 (highlighted by the red line of the price channel) is only possible if the price consolidates below last week's low of 1.0214. The intermediate level has now been updated to 1.0214, and the market is waiting for further developments. A correction toward the 1.0350 resistance level is also a possibility.
On the H4 timeframe, a divergence is visible. The price is currently moving within the 1.0214 range with a slight bullish bias. However, upward movement may be capped by the MACD line at 1.0295. If this resistance is breached, the next target will be 1.0350.
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Forex Analysis & Reviews: Forecast for EUR/USD on January 14, 2025
The euro failed to overcome the support on the first attempt on the weekly chart. We hadn't expected such a bold move from the bears.
Currently, the price is undergoing an upward correction. Convergence on the daily chart has strengthened, and we are awaiting the conclusion of the consolidation phase.
If the price consolidates below the trendline on the weekly chart at 1.0211, this could open up a target of 0.9920. The intermediate levels to watch are at 1.0135 and 1.0030.
On the 4-hour chart, today's price increase during the Pacific session was halted by the MACD line at 1.0278. Should the price gain the strength to surpass this high, growth could extend to 1.0350. The convergence has yet to complete its course.
Analysis are provided by InstaForex.
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Forex Analysis & Reviews: Forecast for EUR/USD on January 16, 2025
Despite significant movements across the market, European currencies closed on Tuesday with minimal changes: the euro lost 20 pips, while the pound gained 22 pips. Meanwhile, the S&P 500 rose by 1.83%, oil increased by 3.06%, and gold gained 1.50%. The stock and commodity markets were driven by high profit reports from major banks.
On the daily chart, the upward movement stopped at the 1.0350 resistance level. The signal line of the Marlin oscillator continues to develop within a triangle formation. The prevailing scenario suggests a likelihood of the price breaking below the 1.0211 signal level and aiming for support at 1.0135. On the H4 chart, after testing the resistance at 1.0350 and support at 1.0265 (the MACD line), the price returned to its position from Tuesday morning.
The Marlin oscillator remains at a similar level. Since the price has settled below the balance line (red moving average), we expect it to consolidate below the MACD line and test the signal level at 1.0211. If the price consolidates above 1.0350, a move toward 1.0461 becomes likely, representing an alternative scenario.
Analysis are provided by InstaForex.
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Forex Analysis & Reviews: Forecast for EUR/USD on January 20, 2025
Today, the euro begins trading within the range established on January 15, where it remained throughout last week. Market attention is heavily focused on the inauguration of Donald Trump. If political and economic developments unfold as Trump has indicated, we can anticipate a strengthening of the dollar and a weakening of stock indices.
The euro appears to be set for a decline. On the daily chart, the Marlin oscillator has formed a triangle within a descending trend zone, which increases the likelihood of both the indicator and the price moving downward. A definitive signal for a price breakout to the downside would occur if the price breaches the 1.0211 level, which coincides with the oscillator's signal line breaking below the lower boundary of the triangle. The target for this move is 1.0135.
On the four-hour chart, the price has significantly reinforced the support of the MACD line, meaning that a breakdown of this support could trigger an impulsive decline. The Marlin oscillator is currently at the neutral zero line, suggesting potential synchronized movement. A firm break below 1.0265 would enable the price to effectively challenge the 1.0211 signal level.
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Forex Analysis & Reviews: Forecast for EUR/USD on January 21, 2025
On the day of Donald Trump's inauguration, it was announced that the new administration would not introduce "global" trade tariffs in the near future. This announcement led to an air of optimism in the markets; however, the U.S. Dollar Index fell by 1.26%, while the EuroStoxx 50 rose by 0.32%. Despite the optimism, the situation may be overly simplistic, as tariffs on various strategic goods, such as automobiles, are expected to be implemented soon. The extent and impact of these tariffs, particularly against China, will largely depend on China's willingness to negotiate. Additionally, investors are anticipating three Federal Reserve rate cuts this year. This expectation is driven not only by the prospect of lower inflation but also by the potential emergence of trade wars. Major players seem to be taking advantage of the situation to push medium-sized dollar buyers out of the market. Reports indicate that large speculators have accumulated a record-long dollar position since 2019. Once their positions are liquidated, the dollar is expected to continue strengthening in the medium term. However, CFTC data suggests that claims about these record positions may be misleading. Positions were larger at the beginning of 2020. And then, there was indeed an upward market reversal (in May), but that situation was linked to the pandemic and quantitative easing. Currently, these large positions could push the euro further downward without significant speculative spikes.
We maintain our perspective: on the daily chart, the euro has reached resistance at the MACD line and began to decline today. If the price consolidates below the support level of 1.0350, it will pave the way for a move towards the first target at 1.0135. For a more substantial movement, the price may linger above the support level for a day, awaiting the Marlin oscillator to shift into negative territory.
On the H4 chart, there are two significant support levels to monitor: the 1.0350 level and the MACD line at 1.0283. For the bears to gain full control, the price must break through both of these support levels.
Analysis are provided by InstaForex.
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Forex Analysis & Reviews: Forecast for EUR/USD on January 23, 2025
Yesterday, the euro peaked at 1.0458. We previously identified a target level of 1.0461, based on the low from December 2; however, this can now be adjusted to the December 13 low, which sets the new target at 1.0454. The euro surpassed this by 4 pips. Ultimately, the price reached the resistance level but failed to consolidate above the balance line, closing the day with a 21-pip decline and did not consolidate above the MACD line.
This morning, the price continues to press against the MACD line, while the Marlin oscillator has turned downward. If the support level at 1.0350 is breached, the next target will be 1.0135. A weak double divergence has formed on the H4 chart. The signal line of the Marlin oscillator is nearing negative territory.
We expect the price to test the 1.0350 support level soon. This level is reinforced and its significance is heightened by the MACD line, which is approaching the support level. A consolidation below 1.0350 could trigger a sharp price decline.
Analysis are provided by InstaForex.
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Forex Analysis & Reviews: Forecast for EUR/USD on January 27, 2025
On Friday, the euro closed the day up 77 pips, with the upper shadow reaching the April 2015 low, while also covering the November 2015 low. Although this resistance appears strong, the price managed to close above the MACD line, which creates the potential risk for further growth toward 1.0598.
Conversely, the Marlin oscillator has entered the growth territory significantly, outpacing the price movement. This suggests that even if the price consolidates above the indicator line, it could eventually prove to be a false breakout. Today, Germany's IFO Business Climate Index for January is forecasted to rise from 84.7 to 84.9, while new home sales in the U.S. for December are expected to increase from 664K y/y to 669K y/y. As a result, the price may remain within the range of 1.0458 to 1.0520 throughout the day.
On the H4 chart, a small gap is visible at the market's opening. Additionally, a divergence has formed, and the Marlin oscillator is moving toward negative territory. However, for a successful downward push, the gap must be closed. This adds to the likelihood of sideways price movement. Another contributing factor is the anticipation of the Federal Reserve's interest rate decision on Wednesday, January 29.
Analysis are provided by InstaForex.
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Forex Analysis & Reviews: Forecast for EUR/USD on January 28, 2025
The main event on Monday was the launch of an open-source AI model by the Chinese startup DeepSeek. According to the developers, they achieved this at significantly lower costs compared to OpenAI, Microsoft, Google, and certainly Nvidia. As a result, by the end of the day, the tech-heavy Nasdaq dropped by 3.07%, the S&P 500 fell by 1.46%, and the Dollar Index rose by 0.08%.
The EUR/USD pair managed to stay within the 1.0458–1.0520 range on Monday, but today it began to decline, already falling below the lower boundary of this range. The Marlin oscillator is showing signs of a stronger downward reversal. A battle is likely at the 1.0350 level, as support is bolstered by the MACD line. If the price reaches this level, it will indicate the strength and determination of the bears. Ultimately, the pair is expected to target the support of 1.0135.
On the four-hour chart, the Marlin oscillator has consolidated below the zero line, and the price is attempting to settle below the 1.0458 level. If this consolidation is successful, there is a high likelihood that the price will break through the MACD line at 1.0412. With the FOMC meeting scheduled for tomorrow, where no rate cuts are expected, market participants may begin to show increased activity as early as today.
Analysis are provided by InstaForex.
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Forex Analysis & Reviews: Forecast for EUR/USD on January 30, 2025
After the Federal Reserve meeting, which was notably neutral, the euro demonstrated a clear reluctance to lose ground, similar to other major markets. Overall, the day unfolded quietly. The lower shadow of the daily candle extended the euro's trading range to between 1.0350 and 1.0458. Since the lower boundary of this range is strengthened by the MACD line, the primary bearish scenario targeting 1.0135 is becoming increasingly challenging.
Today, however, we have the European Central Bank meeting. The market generally expects a 0.25% decrease in the main rates. Before the ECB's announcement, data on employment and GDP for the Eurozone will be released. Unemployment for December is anticipated to remain at November's level of 6.3%, while GDP growth is expected to be only 0.1%, down from 0.4% in Q3. Additionally, German GDP for Q4 may show a decline of 0.1%. Collectively, these events could potentially push the euro below the support level of 1.0350. A price consolidation below this level would open the target of 1.0135.
On the 4-hour chart, there is additional resistance at 1.0433, indicated by the MACD line. Considering both time frames cumulatively, the euro's position appears weaker than it was yesterday. We are awaiting the ECB's decision on monetary policy.
Analysis are provided by InstaForex.
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Forex Analysis & Reviews: EUR/USD Forecast for February 3, 2025
February began tumultuously. On the 1st, U.S. President Trump imposed a 10% tariff on goods from China and a 25% tariff on goods from Mexico and Canada, excluding energy products. As a result, the markets opened with a decent gap.
On the weekly chart, the euro reached the embedded line of the descending turquoise price channel. While market participants assess the implications of Trump's decision, the euro may close the gap that has formed. Once the gap is closed, we anticipate the euro will continue its decline towards the support level of 1.0135 and potentially into the range of 0.9988–1.0030. The strategic target is 0.9885, which aligns with the embedded line of the red price channel.
From a technical perspective, the price correction could be influenced by the Marlin oscillator's signal line reversing from the support level marked by the lows of December 18 and January 10 (indicated by check marks). On the four-hour chart, both the oscillator and the price declined after the Marlin oscillator reversed twice from the boundary of the growth area (marked by arrows).
The Marlin oscillator has now entered the oversold zone. A correction of the oscillator back to the zero line is likely (as shown on the daily chart), which, along with the price closing the gap, would lead to a further decline. There is ample time for this movement before the U.S. employment data is released on Friday.
Analysis are provided by InstaForex.
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