On Monday, the euro was in a narrow consolidation below the resistance level of 1.1750. There was a double expectation - tracking the partial recovery of the US and European stock markets, and expectations of today's Federal Reserve meeting. Earlier, we said that the US central bank will postpone the launch of the QE rollback due to the impending collapse in stock markets (the Chinese Evergrande will officially declare bankruptcy on Thursday) and due to the risk of the fourth wave of coronavirus in the United States rising to new peaks in incidence. Now business media are writing about these risks and about adjusting the Fed's intentions regarding the September meeting. Thus, our thought receives reinforcement, it remains to wait for the meeting itself.
On a daily scale chart, the signal line of the Marlin Oscillator lies in the horizon, as it often happens before the release of important data. Formally, the price is in a downward position, as it is below the indicator lines, but if the euro turns upwards, this movement will be regarded as neutral (sinusoidal with a slope relative to the MACD descending line). The exit above the MACD line (1.1780) will turn this indicator upwards as well. Further, the targets will open: 1.1852, 1.1920, 11975.
On the four-hour chart, the Marlin Oscillator is gathering strength before the border of the growth area, as the price is consolidating before the 1.1750 level. We are waiting for the announcement of the FOMC Fed's decision at 18:00 London time and the press conference of Fed Chairman Jerome Powell at 18:30.The material has been provided by InstaForex Company - www.instaforex.com