Indicator analysis of EUR/USD on May 31, 2023

Trend-following analysis (picture 1)

On Wednesday, EUR/USD could retrace from 1.0733 (the level when yesterday's intraday candlestick closed) downward with the target at 1.0672, the lower fractal plotted by the red dotted line. Once this level is reached, traders could enter the market with long positions with the upward target at 1.0734, the 14.6% Fibonacci correction plotted by the red dotted line.

Picture 1: daily chart

Complex analysis

Indicator analysis – down

Fibonacci levels – down

Trading volumes – down

Trend-following analysis – down

Bollinger bands – down

Weekly chart – down

Conclusion

On Wednesday, EUR/USD could retrace from 1.0733 (the level of closing yesterday's intraday candlestick) downward with the target at 1.0672, the lower fractal plotted by the red dotted line. Once this level is reached, traders could enter the market with long positions with the upward target at 1.0734, the 14.6% Fibonacci correction plotted by the red dotted line.

Alternative scenario. From 1.0733 (the level of closing yesterday's daily candlestick), the instrument could retrace downward with the target at 1.0652 which is the 76.4% Fibonacci correction plotted by the yellow dotted line. After this level is hit, traders could continue with their long positions with the upward target at 1.0734 which is a 14.6% Fibonacci correction plotted by the red dotted line.