FX.co ★ Trading plan for EUR/USD on December 26, 2022

Technical outlook:

EUR/USD continues to drift sideways since December 18, 2022. The triangle consolidation remains bound between 1.0580 and 1.0640. The single currency pair is seen to be trading close to the 1.0625 mark at this point of writing as traders await a breakout of the above trading range. Probabilities remain towards a south side breakout but prices need to drag consistently below 1.0570.

EUR/USD is still holding its Engulfing Bearish candlestick pattern, which was produced around mid-December after hitting 1.0736 highs. Also, note that it was produced around a convergence of Fibonacci retracement and trend line resistance as seen on the daily chart here. Hence bears remain favored to be back in control soon and drag prices below 0.9535.

Alternatively, a break above 1.0736 would open the door towards 1.1000 and higher levels, going forward. For now, traders remain bearish with risk above 1.0750 and a potential target towards 1.0100-50 levels. We shall review the wave structure again as prices drift lower to 1.0100-50 range and decide the next larger degree move.

Trading plan:

Potential drop against 1.0750

Good luck!