Forex Analysis & Reviews: Forecast for EUR/USD on February 16, 2024

EUR/USD
Yesterday, under the influence of the stock market (S&P 500 0.58%) and its own convergence, the euro rose by 44 pips. The upper boundary of the descending price channel at 1.0790 is nearby. A break above the channel will open the nearest target level at 1.0825. Then, assuming that the stock market will continue to rise, the euro may attempt to reach the MACD indicator line at 1.0868 on the daily chart.

The stock market needs to rise by 0.39% to reach its record high set on February 12. If it manages to do so, it may rise by another 1.04% to reach the upper boundary of the global growing price channel since 2009. But we wouldn't count on the euro's growth until the S&P sets a new record high. If the euro breaks the support at 1.0724, the bears may try to bring the quote to the target level of 1.0632. We are waiting for progress.

On the 4-hour chart, the price has risen above the balance and MACD indicator lines, and the Marlin oscillator has settled on its rising half. However, the main obstacle is the upper boundary of the price channel (1.0790), and it is quite difficult to overcome this while we're facing a downward trend. Perhaps the main events will unfold next week. And if you look at such a tool as cyclic lines on the daily chart, you can see a reversal moment on Monday.

Analysis are provided by InstaForex

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