On Monday, the market major is stepping back to 1.0350. Investors are demanding more safe-haven assets because the global situation is worsening.
Attention is focused, on the one hand, on the aggressive position of the US Fed in terms of interest rates. On the other hand, critical macroeconomic releases are due that may give some base for revising the market viewpoint. The moods around risks are negative, supporting interest in the USD.
On Monday, the macroeconomic calendar is empty, but investors have to be prepared for a flow of data.
On H4, EUR/USD continues forming a consolidation range around 1 0345. With an escape downwards, the wave of decline may continue to 1.0185. With an escape upwards, the price may leap up to 1.0490 and then decline to 1.0276.
Technically, this scenario is confirmed by the MACD: its signal line is heading straight up, which suggests a continuation of the wave of decline.
On H1, EUR/USD has formed an impulse of decline to 1.0354 and a correction to 1.0411. With a bounce off this level, the market has reached 1.0340. A consolidation range is expected to develop around this level.
With an escape downwards, the wave of decline might continue to 1.0277. Technically this scenario is confirmed by the Stochastic oscillator. Its signal line is near 50. A bounce off it and a further decline to 20 is expected.
Disclaimer: Any forecasts contained herein are based on the author's opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews.
