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21.11.202308:08 Forex Analysis & Reviews: Trading plan for EURUSD on November 21, 2023

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Technical outlook:

EUR/USD rose through the 1.0950-60 area on Tuesday, hitting the Fibonacci 0.618 retracement of the earlier drop between 1.1275 and 1.0450 levels respectively. The single currency pair is seen to be trading close to 1.0955 at this point in writing and could turn lower from here soon. The initial support is at 1.0825 and the bears would be targeting that for now.

EUR/USD might have completed a flat corrective structure, which began from the 1.0450 lows earlier. Ideally, the bears should be back in control from here and resume lower towards its larger-degree downtrend and break below 1.0450 going forward. Prices should stay below 1.1275 to keep the above bearish structure intact.

EUR/USD is also indicating a bearish divergence on the 4H RSI as highlighted on the chart here. As prices rallied past the 1.0960 high, the RSI failed to break higher, which is a highly probable indicator of a potential turn ahead. Only a significant push above 1.1100 would nullify the above bearish structure. For now, the bears are poised to break below 1.0825.

Trading idea:

A potential trend reversal against 1.1275 to resume soon.

Good luck!

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