FX.co ★ Trading plan for EURUSD for May 24, 2023

Technical outlook:

EURUSD is preparing to extend its corrective rally towards the 1.0870-1.0900 zone in the near term. The single currency pair is seen to be trading close to 1.0780 at this point in writing after finding support just below 1.0770 on Tuesday. A push above 1.0820-25 will confirm that the bulls are now targeting the 1.08750-1.0900 zone before giving in to the bears.

EURUSD is unfolding a complex corrective structure (expanded flat) from the 1.1035 highs. It has completed two waves of the proposed correction around 1.0525 and 1.1095 respectively. The last wave is unfolding now and is expected to drag the price through 1.0500 at least in the next few trading sessions. Only a break above 1.1095 would nullify the bearish structure.

EURUSD is attempting a lower-degree corrective rally after dropping to 1.0760 earlier. Intraday resistance is seen around the 1.0875-1.0900 zone, which could produce a bearish reaction if the price reaches there. Please also note that potential remains for a drag towards the 1.0100-50 zone, which is close to the Fibonacci 0.618 retracement of the previous upswing between 0.9535 and 1.1035.

Trading idea:

A potential drop to continue towards 1.0500 after testing 1.0875.

Good luck!