FX.co ★ Forecast for EUR/USD on May 23, 2023

EUR/USD

Yesterday, the US stock market closed mixed, bond yields slightly increased, and as a result, the euro did not extend the corrective growth that started on Friday.

Nevertheless, the day closed with a white candlestick above the level of 1.0804, and the signal line of the Marlin oscillator continues to rise, suggesting that we might see a bullish correction. For this to happen, the price needs to surpass the previous day's high at 1.0832. The upper limit of the corrective growth is represented by the embedded line of the price channel around the 1.0887 mark. If the price consolidates below 1.0804, it will indicate that the previous breakout above the level was false and will pave the way to the target at 1.0736.

On the four-hour chart, the price is consolidating above the level of 1.0804. The subsequent price movement is more likely to be upward, but not significantly, towards the nearest resistance at 1.0845 - the MACD line. The Marlin oscillator is moving parallel to the zero line in the positive area. The balance indicator line (red) is holding back the growth, but even with moderate price growth, it will adapt and stay above the price. This indicates the corrective nature of the potential growth.