Forex Analysis & Reviews: Forecast for EUR/USD on January 23, 2024

EUR/USD
Yesterday, the main event was that traders saw a higher probability of the Federal Reserve keeping the current interest rate at the March meeting to 58.4%. The speeches of FOMC representatives finally had an effect. As a result, the dollar index increased by 0.08%, and the euro fell by 15 points.

The price rebound occurred at the intersection point of the balance indicator line on the daily timeframe with the target level of 1.0905. The local decline is supported by the MACD line around the level of 1.0853 on the daily timeframe. A consolidation below this level will allow the price to move towards 1.0825 and even 1.0730, which is the embedded price channel line and the target level.

A consolidation above 1.0905 will open the way towards the target of 1.1033. This is the main scenario. The signal line of the Marlin oscillator is in a sideways neutral movement. Tomorrow, the eurozone will publish the Manufacturing PMI for January, with a forecast of 44.8 compared to December's 44.4. The US Manufacturing PMI is also expected to rise, reaching 48.0 compared to 47.9 in December. This likely indicates a recovery in risk appetite.

Analysis are provided by InstaForex

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