The macro system itself is fine, it's the targeting mechanism that's a bit funky for healing.
If you target an illegal target to heal (ie: a monster), the spell would be aimed back at the caster. Same applies to your pets.
However, this does not apply if the target doesn't exist in the first place, thus the <mo> combined with <t> would work:
/pac "Embrace" <mo>
/pac "Embrace" <t>
If you haven't pointed your mouse at anything that can be a legal target, <t> would apply. But with some monsters being as big as they are or as close as you have to be or with people running all over the place, you have to really pay attention to where your cursor is pointing at. Even pointing it at your party list would trigger the <mo> line.
There is also the thing that the second line for <t> wouldn't be anywhere as fast as normal for some reason.