Forecast for EUR/USD on October 21, 2019

The euro exceeded the closest target level of 1.1155 at the Fibonacci level of 110.0% on Friday, probably on the optimism of investors on a new EU deal with the British prime minister about more favorable conditions for themselves than they were before (Theresa May's options). Today, the British Parliament begins to finalize the deal.



On the daily chart, the price has consolidated above the line of the descending price channel, the Marlin oscillator shows a reversal only to insignificant depth, therefore the next target of 1.1215 as the Fibonacci level of 100.0% becomes relevant.



On the four-hour chart, Marlin is expanding deeper, but it has not yet formed a divergence as a reversal formation, which also speaks in favor of the rising scenario. A trend reversal, of course, does not have to be accompanied by divergences, but then the fall of the signal line should be sharp, with the formation of a spike. So, we are waiting for the euro to grow by around 70 points, after which reversal elements may be added to the technical picture.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.