Trading plan for EURUSD on September 06, 2022

Technical outlook:

EURUSD climbed through the 0.9960-65 range during the late Asian session on Tuesday after finding support at around 0.9875 early this week. The single currency pair is seen to be trading close to 0.9965 at this point in writing and is expected to push through the 1.0085-90 zone in the near term. A Morning Star pattern is likely to unfold on the daily chart.

EURUSD has carved a larger-degree downswing between 1.2350 and 0.9875 since January 2021. The currency pair might have completed or is about to complete a larger-degree corrective pattern at around 0.9400. Before that, a corrective rally towards 1.0800-1.0900 could be expected and a break above 1.0365 will confirm the same.

Furthermore, since the recent swing low at 0.9875 is accompanied by a strong bullish divergence on the daily RSI, prices are expected to turn higher soon. Immediate price resistance is seen at 1.0085. Once taken out, the bulls would target the 1.0365 mark, which is next in line as seen on the daily chart here.

Trading plan:

Potential rally towards 1.0365 and 1.0800 against 0.9800

Good luck!