FX.co ★ Trading plan for EURUSD on July 19, 2023

Technical outlook:

EUR/USD raised through the 1.1275 high on Tuesday before hitting resistance and pulling back lower again. The single currency pair managed to carve a potential low at 1.1208 thereafter and is seen to be trading close to 1.2030 at this point in writing. The rally from 1.0830 looks complete at 1.1275 and the bears should be inclined to produce a corrective drop soon.

EUR/USD broke out of its triangle consolidation last week after terminating at 1.0830. Earlier, the instrument had managed to carve a larger-degree upswing between 0.9535 and 1.1035 as seen on the daily chart. Ideally, prices should resume higher again after correcting towards 1.0980 in the next few trading sessions.

EUR/USD has further carved a lower-degree upswing between 1.0830 and 1.1275. If the bears are able to hold prices below 1.1275, we should witness a meaningful retracement towards 1.0980, which is close to the Fibonacci 0.618 level of the above rally. The bulls will remain inclined to be back in control thereafter.

Trading idea:

A potential drop to 1.0980 to resume soon.

Good luck!