FX.co ★ Trading plan for EURUSD on May 20, 2022

Technical outlook:

EURUSD raised through the 1.0610 highs during the late New York session on Thursday before pulling back. The single currency pair is drifting a bit sideways within a lower degree triangle before breaking higher towards the 1.0640-50 area. Bulls are still looking poised to remain in control and break above initial resistance around 1.0650 in the near term.

EURUSD is set to carve a meaningful upswing between 1.0348 and 1.0650 going forward. Once complete, bears would want to produce a pullback through the 1.0450-60 mark at least before the next leg resumes higher. The currency is seen to be trading close to 1.0580 at this point in writing and is expected to print 1.0640-50 soon.

EURUSD is close to confirming a potential trend reversal, which was called after the 1.0348 low was accompanied by a strong bullish divergence on the daily RSI. Upside target potential remains through 1.0920-30 and up to 1.1200 respectively. Traders might be preparing to hold long positions taken since the 1.0350 mark.

Trading plan:

Potential rally towards 1.0920 and 1.1200 against 1.0300

Good luck!