Trading plan for EURUSD for August 01, 2022

Technical outlook:

EURUSD rose through 1.0230 again after finding support at around 1.0145 last week. The single currency pair is seen to be trading close to 1.0225 at this point in writing and is expected to stay above the 0.9952 interim support. Prices might drop below 1.0105 but bulls are looking keen to hold ahead of 0.9975.

EURUSD is still unfolding a larger-degree corrective rally since the 0.9975 lows. hence, the trading instrument has the potential to reach the 1.0800-1.0900 area in the next several weeks. Prices have carved a lower-degree upswing between 0.9975 and 1.0273 as seen on the daily chart. Furthermore, it has retraced through 1.0105, which is just a few pips shy of the Fibonacci 0.618 retracement at 1.0075.

Even if prices drop through 1.0075, EURUSD is expected to find support and produce a bullish bounce. It is expected to push through the 1.0800-1.0900 range thereafter. The bottom line is that prices should hold above 0.9975, which acts as interim support at the moment. Thus, we have to check whether EUR produces a trend reversal or just a corrective rally.

Trading plan:

Potential rally through 1.0800-1.0900 against 0.9975

Good luck!