FX.co ★ Trading plan for EURUSD for May 15, 2023

Technical outlook:

EURUSD dropped below 1.0860 intraday on Monday, extending its bearish move, which had begun from the 1.1095 highs earlier. The single currency pair is seen to be trading near an intraday low at 1.0860 and is expected to slip below 1.0700 in the near term. The bears are now looking poised to hold prices below 1.1095 and drag towards 1.0500 at least.

EURUSD is working on a larger-degree upswing between 0.9535 and 1.1095 carved in the past several months. The lowest target is seen towards 1.0500 and it is possible for prices to drag further through 1.0100. Also, note that 1.0100 is seen close to the Fibonacci 0.618 retracement of the above rally.

EURUSD might produce intraday pullback rallies but they should remain well capped around 1.0950, which is the past support-turned-resistance zone now. Intraday support is seen around the 1.0800-30 area. So, we expect some pullback if prices manage to reach there. Only a consistent push above the 1.1055 interim resistance will nullify the bearish structure.

Trading idea:

A potential drop against 1.1200 towards 1.0500

Good luck!