FX.co ★ Trading plan for EURUSD for February 04, 2022

Technical outlook:

EURUSD raised through 1.1451 mark on Thursday, inching closer to our immediate price target of 1.1500. The rally has been very sharp and has taken only four days since 1.1121 low registered last Friday. Bulls will be poised to take out 1.1500 handle today to register themselves before producing a meaningful pullback.

EURUSD is testing one year old trend line resistance at the time of writing around 1.1450 level and is expected to break higher. It would be the first bullish boundary between 1.1121 and 1.1500, which could be retraced thereafter. It should be noted that the recent rally has opened up further doors towards 1.1700 and higher going forward.

EURUSD's overall wave structure continues to remain bullish after having bounced off the Fibonacci 0.618 retracement of the previous rally between 1.0636 and 1.2350 levels as shown on the daily chart. Watch out for a break above 1.1500 soon to further confirm that bulls are back in control.

Trading plan:

Potential target around 1.1500 against 1.1120 almost achieved.

Good luck!