Trading plan for EURUSD for January 10, 2022

Technical outlook:

EURUSD had raised through 1.1360-70 levels on Friday post the Nonfarm Payroll figures. The move was in line with expectations as per charts and discussed earlier. At the moment, the single currency pair is pulling back and could drop down to 1.1270 mark before finding support. It is trading around 1.1325 at the time of writing and faces intraday resistance around 1.1340-50 mark.

EURUSD has already produced an upswing between 1.1186 and 1.1383 during the first week of December 2021. The pair seems to be producing a complex correction since then, to retrace the above upswing. A fibonacci support zone is defined around 1.1250-70 zone for the correction to terminate. Bulls might remain inclined to be back in control thereafter.

EURUSD had earlier rallied between 1.0636 and 1.2350 levels carving a larger degree upswing. The subsequent drop was also corrective, and found support just below the Fibonacci 0.618 retracement of the above rally around 1.1186 as seen on the chart here. High probability remains for bulls to hold prices above 1.1186 and push higher toward 1.1700 in the next few weeks.

Trading plan:

Potential rally through 1.1700, against 1.1150

Good luck!