FX.co ★ Trading plan for EURUSD on May 10, 2023

Technical outlook:

EURUSD dropped through the 1.0940 intraday lows on Tuesday before the bulls were back in control to pull back higher. The rally proved to be short-lived as prices reversed from the 1.0980 potential resistance. The single currency pair is seen to be trading close to 1.0960 as the bears remain poised to come back in control and drag lower towards the 1.0900 interim support.

EURUSD might be now on its way to carve a meaningful larger-degree correction potentially towards 1.0520 at least. Earlier, the currency pair had rallied through the 1.1095 highs carving a larger-degree upswing, which began from 0.9535. Having said that, please note that the potential target could be seen towards the 1.0100-50 zone, which is the Fibonacci 0.618 retracement of the entire rally.

EURUSD is currently targeting the 1.0900 interim support, followed by 1.0830-00 and 1.0700 in the medium term. A slip below 1.0700 could further open the door towards 1.0520 and lower going forward. Pullback rallies remain possible but they should be capped below 1.1095 going forward.

Trading idea:

A potential drop against 1.1200

Good luck!