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05.05.202111:41 Forex Analysis & Reviews: Trading plan for EURUSD for May 05, 2021

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Technical outlook:

EURUSD finally completes its first leg lower from 1.2150 levels today. Bears were successful in printing intraday low at 1.1987, breaking the initial support at 1.1993 levels. The drop in prices is accompanied by bullish divergence on 1H RSI (not seen here), hence a corrective rally could be resuming soon towards 1.2080 levels.

EURUSD has pulled back from the day's low and is seen to be trading around 1.1996 mark at this point in writing. The short term time frame has also produced a tweezer bottom indicating a potential bullish reversal over the next 1-2 trading sessions. Immediate interim support is now at 1.1942, while resistance comes around 1.2150 levels respectively. Expect the counter trend rally to stall around 1.2080/1.2100, which is close to fibonacci 0.618 retracement of the drop between 1.2150 and 1.1987 respectively. (not shown here)

The larger wave structure reveals that EURUSD might remain in control of bears from here on and continue dropping towards 1.1300 levels at least. In the immediate short term though, bulls might be inclined to produce a counter trend rally. A break above 1.2026 confirms that the corrective rally is underway.

Trading plan:

Remain short add more @ 1.2080, stop @ 1.2250, target below @ 1.1300

Good luck!

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