FX.co ★ Trading plan for EURUSD on May 27, 2022

Technical outlook:

EURUSD grew to 1.0765 in the early Asian session on Friday. The single currency pair has pushed through fresh swing highs accompanied by a bearish divergence on the RSI on smaller timeframes. It could be seen as a potential turning point to produce a meaningful correction lower toward 1.0520.

EURUSD might have completed its recent upswing that had begun from 1.0348, printing yet another high around the 1.0765 mark. The currency pair has rallied over 420 pips in the past two weeks taking out initial resistance around the 1.0640-50 area. Bulls will be now looking to take a break as prices are retracing lower through the Fibonacci 0.618 levels seen around 1.0500-10.

Once the corrective pullback is complete, EURO bulls could take control back (from around 1.0500-10), and push the price through 1.9020-30 at least. The potential remains for a push towards 1.1200 and higher as well. The probability remains for yet another high above 1.0765 to be printed before prices correct lower.

Trading plan:

Potential rally through 1.0920-30 against 1.0300

Good luck!