FX.co ★ Trading plan for EURUSD for January 21, 2022

Technical outlook:

EURUSD remained under control of bears on Thursday and dropped through 1.1300 lows after hitting intraday high close to 1.1370 mark. The single currency pair is trading around 1.1325 levels at the time of writing and is expected to push through 1.1410 levels near term. Bulls need to hold above 1.1270 and 1.1235 at least, to remain in control.

EURUSD is trading close to the Fibonacci 0.618 retracement of the entire rally between 1.1186 and 1.1486 levels for now (not shown here). High probability remains for support to come in around 1.1320-25 zone and bulls are back in control. According to price action theory, a push above 1.1486 is required to accelerate further toward 1.1650 and higher.

EURUSD faces strong resistance at 1.1690-1.1700 zone, while interim support is seen around 1.1235, followed by 1.1186 levels respectively. Even if the currency needs to break below 1.1186 mark, a pullback toward 1.1410 could be expected before the turn. Watch out for a short term rally to materialize from current levels.

Trading plan:

Potential rally through 1.1700 against 1.1186

Good luck!