FX.co ★ Trading plan for EURUSD on December 01, 2022

Technical outlook:

EURUSD rallied through 1.0450 intraday on Thursday after dropping to the 1.0300 lows late during the New York Session on Wednesday. The single currency pair is seen to be trading close to 1.0445 at this point in writing as the bulls prepare to re-test the 1.0500 handle. It could be safe to exit long positions at around the 1.0450-1.0550 area as strong resistance is expected to be offered.

EURUSD might have completed its larger-degree counter-trend rally at 1.0500 recently. If the above holds well, the bears might come back in control from here and drag prices lower towards the 1.0000 mark at least. The potential also remains for the larger-degree trend to resume lower from here and drag the price below 0.9535.

The overall wave structure from the 0.9535 lows suggests that EURUSD is preparing to turn lower either from here or after pushing through the 1.0550-1.0600 range. Either way, the bears are inclined to come back in control and drag the price towards 0.9500. A break below the 1.0300 immediate price support would confirm that the next move lower has resumed.

Trading idea:

Potential top in place around 1.0500. Aggressive trade setup might be lower from here, towards 1.0000 against 1.0700.

Good luck!