FX.co ★ Trading plan for EURUSD for May 03, 2021

Technical outlook:

EURUSD finally reverses after hitting 1.2150 levels last week; confirming bears are back in control. Also note that prices revered after testing trend line resistance and from just above the fibonacci 0.618 retracement of the entire drop between 1.2350 and 1.1704 levels respectively. Potential target now remains 1.1300 levels at least, in the next few weeks.

EURUSD had earlier dropped through 1.2013 lows today, before finding some support. It is seen to be trading close to 1.2050 levels at this point in writing and might be preparing to turn lower again towards 1.1980 intraday. Immediate price support is at 1.1993 mark, while resistance comes in around 1.2150 levels respectively.

The overall trend has turned lower since 1.2350 highs. EURUSD bears are looking poised to resume their next major leg lower from here and it is quite possible to test the March 2020 lows around 1.0636 levels, going forward. We shall review the situation again around 1.1300 mark, which is fibonacci 0.618 retracement of the entire rally between 1.0636 and 1.2350 levels respectively.

Trading plan:

Remain short stop @ 1.2250, target @ 1.1300.

Good luck!