FX.co ★ Trading plan for EUR/USD for August 08, 2023

Technical outlook:

EUR/USD has been drifting within a tight range between 1.0965 and 1.1000 for the past 24 hours. The single currency pair might be consolidating within a triangle structure before breaking higher towards the 1.1275 mark. The bottom line for bulls to remain in control is to hold firmly at the 1.0830 support level. A break lower will bring bears back into play and retrace the entire rally between 0.9535 through 1.1035 respectively.

EUR/USD is still testing its long-term trendline support above the 1.0900-10 range. A morning star pattern has been confirmed but prices are still drifting sideways before breaking higher again. The upside targets are seen at the 1.1400 and 1.1550 levels in the near term. On the flip side, if the price breaks through 1.0830, bears will be inclined to drag it through the 1.0500 level at least.

EUR/USD remains in control of bulls as prices consolidate below the 1.1000 mark. Also, note that bulls have managed to bounce back from the 0.618 Fibonacci retracement of its previous upswing between 1.0830 and 1.1275. The probability remains high for a rally to materialize at the current levels.

Trading idea:

Potential rally may resume towards 1.1275 against 1.0830

Good luck!