FX.co ★ Trading plan for EURUSD for February 03, 2022

Technical outlook:

EURUSD has raised through 1.1335 mark since registering fresh swing lows at 1.1221 over last Friday. The single currency pair has rallied over 200 pips and is looking poised to continue further toward 1.1500 in the near term. Intraday pullbacks remain possible but they should remain well capped above 1.1221 levels.

EURUSD's drop toward 1.1221 was well accompanied by bullish divergence on the daily RSI as shown here. The potential trend reversal has worked out well in favor of bulls as they now target 1.1500 resistance on the daily chart. Intraday target remains through 1.1350-60 zone before prices pullback. Bulls are looking poised to take this rally through 1.1700 at least.

The overall wave structure also remains constructive for bulls as they had earlier carved a meaningful upswing between 1.0636 and 1.2350 levels. The subsequent drop to 1.1221 was corrective and found support just below the Fibonacci 0.618 retracement of the earlier upswing. Potential remains for a rally past 1.2350 in the next several weeks.

Trading plan:

Potential rally through 1.1500 against 1.1100

Good luck!