FX.co ★ Trading plan for EURUSD for March 08, 2021

Technical outlook:

EURUSD continues to slide without much retracement and prints fresh intraday lows around 1.1865 levels today. The single currency pair is seen to be trading around 1.1878 levels at this point in writing and is expected to continue lower towards 1.1800 and 1.1700 in the near future. Immediate resistance is now seen at 1.2113, followed by 1.2242 and 1.2350; while support comes in around 1.1840 levels respectively.

Looking at the wave structure from 1.2350 highs, EURUSD seems to have carved a meaningful bearish boundary between 1.2350 and 1.1950, which was retraced to fibonacci 0.618 levels around 1.2242 levels respectively. A bearish reaction has turned prices lower since then and the first extensions are pointing towards 1.1800 and 1.1700 levels respectively. There might be some intermediary support around 1.1840 levels and we can expect a pullback thereafter.

The overall structure reveals that EURUSD bears might be inclined to push lower towards 1.1302, which is close to fibonacci 0.618 retracement of the entire rally between 1.0636 and 1.2350 since March 2020. Another possibility also remains for a continued drop lower towards 1.0636 and beyond, before carving a bottom.

Trading plan:

Remain short against 1.2242, target @ 1.1700, 1.1600.

Good luck!