FX.co ★ Trading plan for EURUSD on November 21, 2022

Technical outlook:

EURUSD has slipped towards the 1.0270-80 zone as discussed and predicted earlier. It might be good to exit short positions around the 1.0270-75 area since it is a potential support region. The single currency pair is seen to be trading close to 1.0280 at this point in writing as the bulls prepare for one more leg higher towards the 1.0550-1.0600 area.

EURUSD is still unfolding the last wave higher from the 0.9740 lows to complete its larger-degree corrective rally, which began from 0.9535. Potential upside target extensions are close to 1.0600 and higher, for the last wave to terminate. Also, note that 1.0600 is close to the Fibonacci 0.382 retracement of the drop between 1.2266 and 0.9535 levels respectively.

A high probability remains for a turn lower from 1.0600. The instrument could resume its larger-degree downtrend. Immediate price support on the daily chart is seen around 0.9740, followed by 0.9535; while interim resistance is just below 1.0500 respectively. A push above 1.0480 will confirm and accelerate the rise further towards the 1.0600 mark.

Trading idea:

Potential rally towards 1.0600 against 1.0000

Good luck!