FX.co ★ Trading plan for EURUSD for October 09, 2023

Technical outlook:

EUR/USD seems to have finally bottomed around 1.0450 last week. The single currency pair initially rallied through the 1.0540-50 range, followed by a sharp corrective decline to 1.0480 last Friday. The bulls were quick to regain control and managed to push prices through 1.0595 before beginning to pull back.

EUR/USD has now carved a larger-degree downswing between 1.1275 and 1.0450 in the past few weeks. It would be normal for prices to retrace the above pushing prices higher at least through 1.0770. Having said that, a high probability remains for a rally through 1.0950 as well, which is the Fibonacci 0.618 retracement of the above downswing.

EUR/USD is currently trading close to 1.0555 and could slip to 1.0525-30 to find intraday support. The bulls will remain poised to come back in control from there and push prices through 1.0770. Only a consistent break below 1.0450 will void the above bullish structure and bring back the bears in control.

Trading idea:

A potential rally towards 1.0770 and 1.0950 is underway now.

Good luck!