FX.co ★ Trading plan for EURUSD on April 07, 2023

Technical outlook:

EURUSD seems to have carved a potential top at 1.0975 over the last week and is ready to turn lower. As discussed earlier, prices need to stay below the 1.1035 resistance to keep the bearish outlook intact. The single currency pair is seen to be trading close to 1.0915 at this point in writing as the bears are looking inclined to hold prices below 1.1035.

EURUSD is structurally looking to complete an up gartley by dropping below at least 1.0500 in the next few trading weeks. Potential remains for prices to sink down 1.0100, the Fibonacci 0.618 retracement of the earlier larger-degree upswing between 0.9535 and 1.1035 respectively.

Looking at the lower-degree wave structure, EURUSD is preparing to take out immediate supports below 1.0800 and 1.0700. The above price action will add further confidence to the bearish setup and accelerate a decline towards 1.0500. Alternatively, if the bulls are successful in breaking 1.1035, prices would push through 1.1200 before finding resistance.

Trading idea:

A potential bearish move against 1.1035

Good luck!