FX.co ★ Forecast for EUR/USD on May 22, 2023

EUR/USD

On Friday, the euro rose by 34 points. The upper shadow pierced the target level of 1.0804, closing the day exactly at this level. This morning, the price reached the Friday peak. Obviously, the stock market's frenzied growth (S&P 500 by 2.02% in the last 3 days) and a noticeable rise in yields on US government bonds drew currency speculators to risk.

The Marlin oscillator did not form any reversal pattern, so the rise has a corrective nature. The limit of growth is the embedded line of the price channel around the 1.0890 mark. In order for the growth to continue, the price needs to consolidate above the Friday peak. If the price returns below 1.0804, the nearest target will be the 1.0736 level (the peak of December 15, 2022).

On the four-hour chart, the price is consolidating above the 1.0804 level. The Marlin oscillator is in the growth area. The nearest corrective target is the MACD indicator line around 1.0860. Breaching this level will open the target of 1.0890. If the price consolidates below 1.0804, then Marlin will also return to the negative area.