FX.co ★ Trading plan for EURUSD on November 03, 2022

Technical outlook:

EURUSD whipsawed over 150 pips between the 0.9810-20 and 0.9950-60 area on Wednesday post-FOMC. The single currency pair is seen to be trading close to 0.9815 at this point in writing looking to print yet another shallow low before resuming higher. The near-term structure continues to remain bullish until prices stay above the 0.9700 initial support.

EURUSD remains well supported around 0.9700, followed by 0.9635 and 0.9535 while resistance is seen through 1.0200 followed by 1.0350 levels respectively. Also, note that prices are currently testing the Fibonacci 0.618 retracement of its recent upswing between 0.9635 and 1.0093 levels as seen on the daily chart. A high probability remains for a bullish turn from the current levels in the near term.

On the flip side, if prices drop below critical supports, it would confirm that the corrective rally ended at 1.0093 and that the larger-degree downtrend has resumed. In that case, the bears would target below 0.9400 at least before giving in to the bulls again. For now, the bullish momentum remains intact against 0.9635.

Trading idea:

Potential rally towards 1.0200 against 0.9500

Good luck!