FX.co ★ Trading plan for EURUSD for May 31, 2021

Technical outlook:

EURUSD might be ready to resume lower after having carved a lower high around 1.2266 highs over the last week. Furthermore, the drop between 1.2266 and 1.2133 could be the first swing lower towards 1.1700 and beyond. EURO might be producing a corrective rally towards 1.2210/30 levels before reversing lower again. Ideally prices would stay below 1.2266 mark, going forward.

EURUSD is seen to be trading around 1.2188 levels at this point in writing and is expected to rally towards 1.2210/30 levels in the near term. It is not shown on the daily chart here, but fibonacci 0.786 retracement of the drop between 1.2266 and 1.2133 is also seen passing through 1.2230 levels. Hence probability for a bearish turn remains high if prices manage to reach 1.2230 mark.

EURUSD faces intraday resistance around 1.2230 levels, followed by 1.2260/70; while interim support is at 1.2130 levels respectively. A break below 1.2130 would confirm that bears are back in control and are here to stay for long. Watch out for intraday rallies through 1.2200.30 levels, before EURUSD turns lower again.

Trading plan:

Remain short, stop @ 1.2350, target @ 1.1300

Good luck!