FX.co ★ Trading plan for EURUSD on June 20, 2023

Technical outlook:

EURUSD rallied through 1.09970 over the last week beyond our expectations for the 1.0820-40 range. The single currency pair is seen to be trading close to 1.0930 at this point in writing as the bears prepare to drag the price down towards the 1.0700-50 range in the next few trading sessions. A slip below 1.0700 will open the door towards 1.0500 at least and down to the 1.0100-50 area.

EURUSD has been working on the previous larger-degree upswing between 0.9535 and 1.1035. Scenario 1 suggests a triangle formation, which is expected to terminate around the 1.0700-50 range as discussed earlier. Scenario 2 suggests an extended wave towards the 1.0100-50 area. In both cases, we can expect the instrument to drop towards 1.0700-50 from here.

Furthermore, the recent drop between 1.1095 and 1.0535 has been retraced through the Fibonacci 0.618 level around 1.0970. A high probability remains for a bearish turn from here and the progress towards 1.0700 to complete the triangle structure. Intraday resistance is seen through the 1.0945-50 zone and prices are expected to turn lower from there.

Trading idea:

A potential drop to 1.0700 in the near term.

Good luck!