FX.co ★ Trading plan for EURUSD on May 23, 2022

Technical outlook:

EURUSD is now approaching initial resistance around the 1.0640-50 mark. The single currency pair is seen to be trading around 1.0590, just a few pips away from taking out resistance and confirming a potential trend reversal.Bulls would be poised to hold prices above 1.0350 in case of any pullbacks and push through 1.0920-30 and 1.1200 at least, going forward.

EURUSD has dropped from 1.2350 through 1.0350 in three waves (zigzag) until now. If the drop is complete, we would witness a sharp rally through 1.1200 and higher in the next few trading sessions. The probability remains for a new high above 1.2350 in the next several trading weeks. Alternatively, a minor corrective rally towards 1.1080-90 is at least due.

EURUSD is well poised for a rally against 1.0350 and push through 1.1090 levels in the near term. Furthermore, at a lower degree, the currency pair is set to carve a meaningful upswing between 1.0350 and 1.0640-50 soon. If the above structure holds well, bulls might be looking to remain in control after a slight pullback. The bottom line is that 1.0350 needs to remain intact.

Trading plan:

Potential rally through 1.0920-30 and 1,1300 against 1.0350

Good luck!