FX.co ★ Trading plan for EURUSD on May 31, 2023

Technical outlook:

EURUSD dropped close to 1.0670 on Tuesday before finding bids again. The bulls managed to push the price higher up to 1.0750 intraday before pulling back. The single currency pair is retracing its upswing and is seen to be trading close to 1.0690 at this point in writing. The bulls are expected to come back and push prices towards the 1.0850-70 zone in the near term.

EURUSD is close to terminating its larger-degree corrective wave around 1.0500. The single currency is retracing its previous rally between 0.9535 and 1.1035 and its initial support comes through the Fibonacci 0.382 retracement seen just below 1.0500. Once complete, the bulls are expected to come back and push prices above 1.1095.

EURUSD has been dropping from the 1.1095 highs carving a series of lower-degree waves. Prices might have found interim support around 1.0670 and could produce a short pullback rally towards 1.0850 at least in the next few trading sessions. The bears would be prepared to come back in control thereafter and drag towards 1.0500.

Trading idea:

A potential drop after a short rally towards 1.0850

Good luck!