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

Technical outlook:

EUR/USD has now retraced lower to 1.1010 after rallying higher from its Friday's low. It seems to have carved a potential higher low around the 1.0940-50 zone, which is expected to hold. The single currency pair is seen to be trading close to 1.1010 and is expected to find intraday support around the 1.0980-90 area. The bulls would be back in control thereafter.

EUR/USD remains bullish at a larger-degree wave structure and has completed an upswing between 0.9535 and 1.1035. This was followed by a corrective wave, which unfolded as a triangle and completed at 1.0830. Since then, the euro bulls have remained in control and are now looking poised to push through 1.1500 going forward.

EUR/USD has further produced a lower-degree upswing between 1.0830 and 1.1275 as seen on the chart here. Also, note that prices have retraced the above upswing through the 1.0940-50 range which matches the Fibonacci 0.618 retracement of the upswing. A high probability remains for the rally to resume from current levels but the support at 1.0830 should hold.

Trading idea:

A potential upswing towards 1.1500 to resume soon.

Good luck!