FX.co ★ Forecast for EUR/USD on May 8, 2023

EUR/USD

Investors decided to postpone buying dollars after the release of good labor data in the US on Friday. We don't know how long this will last. Despite the 65-point drop from the resistance of 1.1033 and a return to Friday's opening, the technical indicators' readings have not changed during this time. The price itself, despite the turbulent events of last week, has returned to its opening level. Probably, the stock market's speculative purchases still managed to hold the currency market back from massive sell-offs. On Friday, the S&P 500 grew by 1.85%. With such an approach to risk, the euro may fall in the event of a shock in the real sector, for example, a bank bankruptcy. The S&P 500 index has been moving sideways for three weeks, but if there is no shock, it has every chance to continue growing.

On the weekly chart, the price without obstructing the current forming divergence line can grow up to 1.1110/15. Even on the daily chart, the divergence may become more flat.

But for now, the signal line of the Marlin oscillator, like a week ago, is in negative territory; it does not grow following the price, indicating the weakness of the growing trend. We are left to wait for either the consolidation of the downward movement or the formation of a stronger uptrend. Growth targets are 1.1085, 1.1110.

On the four-hour chart, the price did not consolidate below the MACD indicator line; on the contrary, the price consolidated above this line and accumulated strength for a breakthrough of 1.1033. Overcoming, preferably with consolidation, the peak of Friday 1.1048, will open the target of 1.1085 – the upper limit of the descending price channel, marked on the daily chart in green color.