FX.co ★ Trading plan for EURUSD on March 16, 2023

Technical outlook:

EURUSD reversed sharply lower after printing intraday highs close to 1.0750 on Wednesday. The slide was over 200 pips as the euro bears reached a bottom at 1.0517. The single currency pair is seen to be trading close to 1.0600 at this point in writing and is expected to produce at least a counter-trend rally before resuming lower again.

The recent wave structure since the 1.0535 low could be a complex corrective wave, which could still push the price higher towards the 1.0800-50 zone to complete the pattern. A push above 1.0700 from here will confirm that prices are heading towards another high around the 1.0800-50 area before the bears are back in control. Also, note that 1.0850 is the Fibonacci 0.618 retracement of the recent downswing between 1.1030 and 1.0535.

EURUSD is unfolding a larger-degree corrective wave lower towards 1.0100 as discussed earlier. The currency pair is retracing its earlier upswing between 0.9535 and 1.1030 as highlighted on the daily chart here. Prices might have already turned lower from 1.0750 or will complete the pattern around 1.0800 and then turn lower. Either way, the instrument is looking lower towards 1.0100 going forward.

Trading idea:

A potential bearish move against 1.0130

Good luck!