FX.co ★ Trading plan for EURUSD on May 11, 2023

Technical outlook:

EURUSD rallied through the 1.1000-1.1010 range on Wednesday, carving a counter-trend rally before finding resistance and reversing again. The single currency pair is seen to be trading close to 1.0970 at this point in writing as the bears remain poised to drag prices lower through 1.0900 and 1.0700 in the next few trading sessions.

EURUSD has carved a meaningful larger-degree upswing between 0.9535 and 1.11095 in the past several months. It is now highly probable to produce a similar degree corrective drop (three waves) dragging prices lower towards 1.0520 at least and down to 1.0100-50 as discussed earlier. Also, note that the Fibonacci 0.618 retracement of the above upswing is passing through the 1.0100-50 area.

EURUSD has been working on a recent downswing between 1.1050 and 1.0940 levels (not seen here). Prices have managed to retrace the above downswing on Wednesday after reaching the 1.1000-1.1010 area. The bears will be now inclined to drag prices lower towards 1.0900 and 1.0800 in the near term. A break below 1.0940 will accelerate a climb.

Trading idea:

A potential drop against 1.1200

Good luck!