FX.co ★ Trading plan for EURUSD on November 22, 2023

Technical outlook:

EUR/USD has potentially reversed from the 1.0950-60 range sliding below 1.0900 during early trading hours on Wednesday. The single currency pair has recovered a bit and is now seen to be trading close to 1.0920 at this point in writing. Intraday resistance could be seen close to the 1.0930-40 area and the bears are expected to come back in control then.

EUR/USD has reversed from a significant resistance zone close to the Fibonacci 0.618 retracement of its earlier downswing between 1.1275 and 1.0450 levels. If the pattern holds well, this could be a major trend reversal and drag prices below 1.0450 in the next several weeks. Initial price support is seen at 1.0824 and a break below that is still required to confirm.

EUR/USD has also respected the bearish divergence seen on 4H RSI, which indicated a potential turn from the 1.0950-60 area. A continued drag lower would break its immediate trend line support which is passing close to 1.0824. Ideally, a top seems to be in place and traders might position against recent swing highs around 1.0960.

Trading idea:

A potential drop resumes towards 1.0450.

Good luck!