Forex Analysis & Reviews: Forecast for EUR/USD on January 21, 2022

Yesterday, the euro was hit by a sell-off as investors withdrew from risky assets. The US stock index S&P 500 fell by 1.10%. The price has reached the support of the MACD indicator line on the daily scale chart. The oscillator is in the downward trend zone. But, despite the increased pressure on the quotes of the single currency, the question of an upward reversal looks sharper than yesterday, since touching the MACD line from above looks like testing it before medium-term growth. The first growth target is 1.1415, then 1.1570. Consolidating below the MACD line will open a bearish target of 1.1170.

The price converges with the Marlin Oscillator on the four-hour chart. Actually, this circumstance is the main sign of a price reversal to the upside. But the euro remains under pressure, you need to wait at least two more white candles for the divergence to take place, so that there is a visual price reversal. In the meantime, we are waiting for the development of the situation.

Analysis are provided by InstaForex