Forex FOREX PRO WEEKLY, May 08 - 12, 2023

Morning everybody,

So, as 1.09 is done, next is our major short-term target around 1.0850. First is, we do not see any tricks on daily chart by far. Market shows gradual "2-step down/1-step up" action. And we have no barriers until 1.0850. This level is combination of multiple extensions, oversold and K-support area:

On 4H chart EUR has reached butterfly 1.09 target and is showing minor pullback. Drop yesterday was relatively fast, so, 1.085 target looks reasonable here as well. Maybe not this week, but, at least EUR could start action with this direction.

On 1H chart to consider new short entry we could use two levels, both are Agreements with upside retracement targets. 1.0960 looks perfect but EUR could not reach it:

This setup is for short-term purposes only. To keep it valid EUR has to stay under 1.0960 resistance area. Otherwise, either scale of setup will change or it will be cancelled totally. Thus it makes no sense to place stops too far. Just above K-area should be enough, circa 1.0970+