The single European currency continued to decline below the level of 1.1300 yesterday. There are about 70 points left to the nearest target of 1.1170, and there is a possibility that this level will be overcome, and the price will continue its way to the second target of 1.1050 (resistance in March and December 2015). There are no reversal signs on the daily chart yet.
There is already a reversal sign on the four-hour chart - the emerging convergence of the price with the oscillator. But the convergence may not be completed, Marlin has the opportunity to continue moving into the oversold zone.
A more reliable indicator of a reversal into a deep correction will be when the price goes above the MACD line, above the price level of 1.1300. Corrective growth may continue to 1.1448. And only the price transition above the MACD line of the daily scale can now be taken as a signal of a trend change to an upward one. Such a reversal can be long and chaotic in a trading range of around 250 points.The material has been provided by InstaForex Company - www.instaforex.com