FX.co ★ Trading plan for EURUSD for August 23, 2021

Technical outlook:

EURUSD dropped through 1.1660 lows on Friday, before finding support at close. The currency pair managed to inch higher in the Asia and Europe sessions and is trading at its daily highs around 1.1733 levels as the article is prepared. Bulls might remain poised to push towards 1.1800 from here and that should encourage further as potential remains for a counter trend rally towards 1.2050 levels.

EURUSD has carved a meaningful bearish boundary between 1.2266 and 1.1660 levels respectively. High probability remains for a counter trend rally, which pushes through 1.2030/50 mark, close to fibonacci 0.618 retracement of the above drop. Immediate resistance is seen towards 1.1800 followed by 1.1900/20; while support comes in around 1.1650/60 levels respectively.

EURUSD remains bearish looking at the overall wave structure since 1.2350 highs registered in January 2021. But in the short to medium term, the currency pair turn turn bullish as it prepares to complete a Down Gartley. Watch out for a push through 1.1800 mark either today or possibly as the week progresses.

Trading plan:

Remain short with stop @ 1.2266 targeting 1.1300

Short term traders remain long with stop @ 1.1600 target 1.2050

Good luck!