FX.co ★ Trading plan for EURUSD on May 03, 2023

Technical outlook:

EURUSD rallied back towards 1.1030 in the early hours on Wednesday after dropping through 1.0950 earlier. The single currency pair is seen to be trading close to 1.1020 at this point in writing and is preparing to turn lower soon. The bears remain poised to hold prices below 1.1095 and drag lower to 1.0700 in the near term.

EURUSD is producing a larger-degree corrective wave towards 1.0500 and up to 1.0100 in the next few weeks. A break below 1.0700 will accelerate prices further towards potential targets. Earlier, the single currency pair had carved a meaningful upswing between 0.9535 and 1.1035 levels, which is now being retraced.

EURUSD has carved a lower-degree downswing on the 1-hour chart between 1.1095 and 1.0950 in the past two trading sessions. The currency pair is now retracing in the same way and resistance is expected to be strong around the 1.1040-45 zone. Watch out for a bearish reversal if prices did manage to reach there in the near term.

Trading idea:

A potential drop against 1.1200

Good luck!