06.09.202307:56 Forex Analysis & Reviews: Trading plan for EURUSD on September 06, 2023

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Technical outlook:

EUR/USD continues to carve lower lows as the bears hit another one close to 1.0705 during the New York session on Tuesday. The single currency pair is seen to be trading close to 1.0735 at this point of writing as the bears prepare to come back in control again. Immediate price resistance is seen at 1.0600 as the bulls need to break higher to confirm any meaningful pullback.

EUR/USD has been within a larger-degree corrective phase after printing highs around 1.1275 in July 20203. The initial projected target for its corrective wave is toward 1.0600 and probably 1.0500 respectively. Also, note that 1.0600 is close to the Fibonacci 0.382 retracement of the earlier larger-degree rally between 0.9535 and 1.1275.

EUR/USD could be now working on its recent downswing between 1.0945 and 1.0705 as highlighted on the daily chart here. A pullback rally towards .10800 and 1.0859 remains possible. These are good resistance levels to re-enter on the short side. Only if prices break above 1.0945 initial resistance, the downside could be delayed further.

Trading idea:

Potential downside targets continue towards 1.0600

Good luck!

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