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29.05.202305:34 Forex Analysis & Reviews: Forecast for EUR/USD on May 29, 2023

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EUR/USD:

Last Friday, the euro traded within a range of 56 pips, closing the day at the opening level. The resistance of the target level at 1.0736 and the embedded line of the price channel were tested. Today, the price is not willing to repeat what it did on Friday, but the small convergence with the Marlin oscillator indicates that the price doesn't intend to enter a correction. Today is a holiday in the US and the UK, so we do not expect any significant or qualitative changes in the technical picture.

The threat of a US default (or a budget shutdown) has also passed, as the White House and Republicans have reached an agreement on a 2-year debt limit. The agreement will be passed by the lower chamber tomorrow. If the price consolidates above 1.0736, it may develop a corrective rise towards 1.0804, while falling below 1.0692 would allow the price to target the bearish level of 1.0628.

On the four-hour chart, the price failed to consolidate above 1.0736 on Friday, and this morning it has already settled below it, supported by the downward-turning Marlin oscillator. The price is trying to either stay above 1.0692 or remain in a sideways movement. The first strong resistance for the corrective movement is represented by the MACD line at 1.0756.

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