FX.co ★ Forecast for EUR/USD on February 7, 2024

EUR/USD

The market started a corrective move on Tuesday. Even the S&P 500, which lost 0.32% on Monday, rebounded by 0.23% yesterday. We do not expect a strong correction since this week's economic calendar does not include any significant economic data. The euro's correction will look like a consolidation above the level of 1.0730, approaching the upper boundary of the short-term downtrend channel on the daily timeframe. If the price settles below 1.0730, it will open the target at 1.0632.

The price needs to do a lot to reverse the entire movement, including breaking above the MACD line, i.e., approaching 1.0905. Therefore, at the moment, we are simply waiting for the sideways movement to end. The price could rise above 1.0905 if the stock market continues to set new historical records. However, this will eventually stop.

On the 4-hour chart, a small convergence has formed. The bullish target is the MACD line around the 1.0790 mark. Staying above the line will make it possible for the price to rise to 1.0825.