At the very last moment, the euro released the tension and abandoned its attempt to retest the upper boundary of the price channel. The day closed below the daily MACD line, and the Marlin oscillator is on the verge of entering negative territory.
The price is signaling its readiness to plunge toward the 1.1535 target — once the appropriate conditions emerge. Evidently, the euro is anticipating the Federal Reserve's monetary policy decision on July 30. Until such a drop occurs, the target at 1.1840 remains in play, although the likelihood of reaching it has significantly decreased compared to yesterday.
On the four-hour chart, the divergence proved effective. The signal line of the Marlin oscillator is preparing to cross into the bearish territory. The price is aiming to return to the support of the MACD line (1.1678) — the support seen on June 27, July 8, and July 22. A consolidation below the MACD line will be a clear indication of a breakout toward 1.1535.
