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

Technical outlook:

EUR/USD is facing strong resistance around the 1.0940-50 zone as the bears prepare to come back in control if prices manage to reach there. The single currency pair is seen to be tracing close to 1.0915 at this point in writing and could be preparing for a bearish reversal soon. If prices break below the 1.0766 lows the next target would be 1.0700 and 1.0600 in the near term.

EUR/USD has been retracing a larger-degree upswing between 0.9535 and 1.1275 over the past few weeks. The currency pair is projected to hit 1.0600 and fall down to 1.0500 going forward but prices need to stay below the 1.1275 resistance for now. If a zigzag is unfolding against 1.1275, possibilities remain for a continued drop towards 1.0200 as well.

EUR/USD is either preparing to reverse lower from current levels or after rallying through the 1.1000-50 area. Also, note that the above range is also the Fibonacci 0.50 retracement of the recent downswing between 1.1275 and 1.0765 levels respectively. Either way, the bears are expected to remain in control until prices stay below 1.1275.

Trading idea:

A potential drop to resume towards 1.0600 soon.

Good luck!