Forecast for EUR/USD on October 18, 2023

EUR/USD
Yesterday, the euro settled above the target level of 1.0552. The Marlin oscillator is also in the positive territory. Now, the price needs to gather strength to overcome the strong resistance level at 1.0613, as at the anticipated breakout point, the level intersects with the Fibonacci Fan line.

Breaching this level opens the next target at 1.0687. This level is also strong because the MACD indicator line is approaching it. This will determine the euro's direction in the medium-term - either a breakout with subsequent target realization, as indicated on the daily chart, or a reversal towards 1.02. On the 4-hour chart, the price has settled above the MACD indicator line, but the attempt to break above the balance line was unsuccessful.

The Marlin oscillator is in the uptrend territory, so we expect the price to try and break above the balance line. Without the price consolidating above the balance line, which requires an impulsive initial rise, overcoming the 1.0613 resistance will be extremely challenging.

Analysis are provided by InstaForex

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