07.08.202405:17 Forex Analysis & Reviews: Forecast for EUR/USD on August 7, 2024

Relevance up to 23:00 2024-08-07 UTC--4

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EUR/USD

On Tuesday, market panic finally subsided; the S&P 500 gained 1.04%, the dollar index increased by 0.20% to 3.72%, and the yield on 5-year U.S. government bonds rose from 3.62% to 3.72%. The euro closed the day down 20 pips, having reached the target level of 1.0905 as the day's low. The decline was moderate, but technical divergence intensified.

Now, the price must consolidate below the nearest support at 1.0905 to open the target of 1.0788. For the alternative scenario, namely a rise to 1.1043, the price needs to consolidate above 1.0964, and the signal line of the oscillator must climb above the line forming the divergence.

On the 4-hour chart, the price slightly bounced off the support level it reached. And now it is waiting for the oscillator to move into negative territory. Overcoming the support opens an intermediate target along the MACD line around the mark of 1.0856.

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