FX.co ★ Trading plan for EUR/USD and GBP/USD on May 30

Dollar started the day with a modest but noticeable growth, which could continue throughout the day.

One reason could be the approaching referendum on raising the US debt ceiling, as its passing will be perceived as an incredibly positive factor since it will help the US avoid a default.

Another reason could be the escalating military tension in Europe, where reports of a massive drone attack emerged.

All this will ultimately reduce risk appetite, convincing market players to transfer some funds from Europe to America.

EUR/USD extended its correction, causing the quotes to dip under 1.0700. But even though signals point to euro being oversold, market payers will ignore these signals, which could eventually lead to overheating of short positions and a technical rebound.

Although GBP/USD halted movement along 1.2350, the market remains bearish. Keeping the quote below 1.2300 may trigger short positions, leading to the continuation of the correction.