FX.co ★ Trading plan for EURUSD on August 16, 2023

Technical outlook:

EUR/USD remained shy of taking out the 1.0830 support and reversed higher from the 1.0875 lows. The single currency pair is seen to be trading close to 1.0915 at this point in writing and is projected to resume a counter-trend rally soon. It could also test the backside of the support-turned-resistance trend line before resuming lower again.

EUR/USD has carved a larger-degree upswing between 0.9535 and 1.1275 as seen on the daily chart. The instrument has now broken its one-year trend line support and slipped through 1.0875. A meaningful and much deeper correction could be on its way towards 1.0500 and up to 1.0200 after a small pullback.

EUR/USD has carved a potential lower-degree downswing between 1.1275 and 1.0875 in the past few trading sessions. The above boundary could be now retraced towards 1.1010 at least and up to the 1.1150-60 area before prices turn lower again. Also, note that 1.1150-60 is close to the Fibonacci 0.618 retracement of the above drop, hence the probability remains high for a turn from there.

Trading idea:

A potential downswing to resume towards 1.0500 after a pullback towards 1.1150

Good luck!