Trading plan for EURUSD for March 07, 2022

Technical outlook:

EUR/USD has dropped below fresh swing lows around 1.0830 in early hours on Monday. The single European currency has lost over 500 pips in the last trading sessions and the last leg has been an extended one. It is trading extremely close to the May 2020 lows around the 1.0780-1.0800 zone. Bulls might be looking to come back in control from here.

EUR/USD has also broken through the Fibonacci 0.786 retracement of its meaningful upswing between 1.0636 and 1.2350 levels as depicted here on the daily chart. Furthermore, bullish divergences on the RSI are seen on the weekly chart (not shown here). High probability remains for a bullish reversal.

Strong price resistance is now found at the 1.1500 mark, which needs to be taken out to confirm that bulls are back in control. It will also confirm that a meaningful bottom is in place just ahead of the 1.0800 mark. It will be interesting to see how prices behave in the next few trading sessions as bulls prepare to take control.

Trading plan:

Potential bullish bounce through 1.1500 against 1.0600.

Good luck!