FX.co ★ Forecast for EUR/USD on May 24, 2024

EUR/USD

Yesterday, the main event was the 0.74% drop in the U.S. stock market. Gold also fell by 2.49%, and oil (WTI) by 0.94%. The dollar index strengthened by 0.10%, and the euro lost 7 pips. We believe that the stock market has finally decided to go through a deep correction from the record high that it also reached yesterday. As a result, there's a 75% likelihood that the euro will not return to the May 16 peak.

To strengthen the downward trend, the price must still overcome three areas of strong support: the target level of 1.0796, the MACD line just below this level, and the embedded price channel line around the 1.0774 mark. After this, we expect the euro to reach the target range of 1.0636/56. The 1.0724 level serves as an intermediate support in this scenario.

On the 4-hour chart, yesterday's attempt to test the MACD line from below was quite noticeable, followed by a sharp decline. The MACD line is turning downward, indicating the direction of the new medium-term trend. The Marlin oscillator is developing on a downward trajectory. We expect a test of the target support levels.