31.01.202307:53 Forex Analysis & Reviews: Trading plan for EURUSD on January 31, 2023

Technical outlook:

EURUSD dropped through 1.0839 during the New York session on Monday before pulling back. The currency pair had earlier rallied through 1.0911 which was an intraday resistance zone as discussed. The single currency pair is seen to be trading close to 1.0840 at this point in writing as the bears have successfully carved a lower high at 1.0911. Prices ideally stay lower from here on.

EURUSD has completed its larger-degree rally, which had begun from the 0.9535 low in September 2022 at 1.0929. A high probability remains for a meaningful pullback of a similar degree towards 1.0400 and 1.0100 in the next few weeks. The bulls might remain inclined to be back in control thereafter and push prices above 1.0929.

EURUSD is well placed to find intraday resistance around 1.0880 and it might be taken as yet another opportunity to add short positions. Only a consistent break above 1.0929 will negate the above bearish outlook bringing back the bulls under control. Watch out for the Fibonacci 0.618 retracement around 1.0100 for a potential turn going forward.

Trading idea:

Potential bearish acceleration against 1.1000

Good luck!