FX.co ★ Trading plan for EUR/USD on January 20, 2022

Technical outlook:

EUR/USD found support just near the 1.1300 mark as bulls were able to hold above the critical support level around 1.1270 on Wednesday. The single currency pair managed to push through 1.1357 thereafter. EURO bulls are holding around 1.1350 for now and are looking to push through 1.1390-1.1400 in the near term.

EUR/USD earlier hit resistance around 1.1486, accompanied by the dropping trend line from the 1.2266 high as seen on the daily chart here. The pair pulled back and now it is searching for support near the 1.1270 level, which should be encouraging for bulls. A push through 1.1390 will confirm a meaningful higher low around the 1.1310 mark.

The structure of EUR/USD will turn bearish only on a consistent break below the 1.1186 interim support. Until then, bulls are poised to remain in control and continue pushing the price higher through the 1.1700 mark, which is the next in-line resistance. Watch out for a break above the 1.1486 mark for further acceleration.

Trading plan:

Potential rally towards 1.1700, against 1.1186

Good luck!