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

EUR/USD

Yesterday, the euro rose by 42 pips. The price overcame the MACD indicator line, and it reached the target level of 1.0905. The S&P 500 gained 0.51%, and commodity markets also rose. It would seem that it will be easy for the euro to hit the target level of 1.1001, but there are three circumstances that hinders the price from reaching this mark: the euro has corrected exactly 50% of the movement from December 28 to February 14, the S&P 500 indicators do not point to growth, and today, the European Central Bank meeting will be held, where, according to rumors, sentiments may shift towards a soft stance.

If the euro returns below the MACD indicator line (1.0878), then it may reach 1.0796 very soon. To maintain the uptrend, the price must consolidate above yesterday's high of 1.0916, which will also be a break above the Fibonacci level of 50.0%.

On the 4-hour chart, the price begins to form a consolidation before the level of 1.0905. The quote will probably remain here until the ECB event. The MACD line provides support to the price at around 1.0854, slightly below the 38.2% Fibonacci level on the daily chart. This means that in order for the price to fall and reach the target of 1.0796, it should not hesitate to overcome such support levels.