FX.co ★ Trading plan for EURUSD on February 17, 2023

Technical outlook:

EURUSD dropped through the 1.0630 lows intraday on Friday as the bears tighten their grip to drag the price lower through 1.0500. The single currency pair is seen to be trading around the 1.0630 lows at this point in writing and there is still some steam left to break the 1.0481 support seen on the daily chart. An intraday pullback remains possible but resistance stays at 1.0700-10.

EURUSD is currently retracing its larger-degree rally between 0.9535 and 1.1025 as seen on the daily chart here. The corrective drop is expected to reach 1.0500-50 and down to 1.0100 in the next few trading sessions (marked in red). Immediate resistance is strong around 1.1025, while support is at 1.0481 respectively.

EURUSD might have either completed its first wave lower at 1.0630 or is close to terminating soon close to 1.0500. If the above is correct, prices are expected to produce a pullback rally towards 1.0800-50 and 1.0900 from here as the second wave of the corrective decline is unfolding. The bears are expected to be back in control thereafter.

Trading idea:

The potential bearish move against 1.1025.

Good luck!