EUR/USDThe euro exchange rate has approached the support of the daily Kijun line (1.1720). A consolidation below this level would signal that the EUR/USD pair is ready to continue its decline toward the target level of 1.1632 (the peak from June 12).

However, the Marlin oscillator is still in positive territory, so it would be beneficial for the euro to slow down a bit and prepare for a downward breakout—possibly tomorrow, when there will be a showdown between the PMI indices of Europe and the United States.

On the four-hour chart, conditions are forming in favor of the dollar winning the PMI battle, as the price has settled below both indicator lines, and the Marlin oscillator has moved deeply into the negative area and is already poised for consolidation, preparing for an even deeper decline. We expect the main developments to unfold tomorrow.