FX.co ★ Trading plan for EURUSD on January 30, 2023

Technical outlook:

EURUSD dropped to the 1.0837 lows on Friday during the New York session, just managing to test previous short-term support at 1.0835. The single currency pair has since found support and is seen to be trading close to 1.0875 at this point in writing. A meaningful top might be already in place around 1.0929 over the last week as the bears are willing to hold prices lower.

EURUSD should ideally stay below 1.0929 to keep the bearish momentum intact. The larger-degree rally which began in September 2022 from 0.9535 looks mature and complete at 1.0929. If the structure holds well, we should witness a meaningful pullback towards 1.0400 and down to 1.0100 going further.

EURUSD is facing intraday resistance close to 1.0900, while support is seen through 1.0835. A break below 1.0835 will confirm and accelerate a move further towards 1.0750 and 1.0480 in the next few trading sessions. Also, note that 1.0100 is close to the Fibonacci 0.618 retracement of the above rally, hence the potential for a bullish turn remains high from there.

Trading idea:

A potential bearish move against 1.1000

Good luck!