FX.co ★ Trading plan for EURUSD on August 23, 2023

Technical outlook:

EUR/USD dropped to the 1.0837 lows on Tuesday, almost taking out its support around 1.0830. The single currency pair is seen to be trading around 1.0860 at this point in writing and is projected to produce a pullback rally towards 1.1000. On the flip side, if prices continue to drop below 1.0830 consistently, the instrument could drag further through 1.0500.

EUR/USD is progressing within a corrective phase after having printed a high at about 1.1275. The minimum projection for the correction to complete is around 1.0500 which is the beginning of the triangle consolidation. Also, note that potential remains for a continued drop towards 1.0200, the Fibonacci 0.618 retracement of the entire rally between 0.9535 and 1.1275.

EUR/USD has now carved a lower-degree downswing between 1.1275 and 1.0837 as seen on the daily chart here. The minimum retracement is seen through 1.1010 which could extend through the 1.1150 zone as well. Once the expected pullback is complete, we can expect the downswing to resume towards 1.0500 at least.

Trading idea:

A potential corrective rally should resume towards 1.1000 soon.

Good luck!