FX.co ★ Trading plan for EURUSD for February 07, 2022

Technical outlook:

EURUSD has quickly rallied through 1.1483 taking out initial resistance on the daily chart. The single currency pair has rallied over 350 pips in the last five trading sessions as bulls register themselves. The move has confirmed a meaningful bottom in place at 1.1120 mark and that blls are back in control from here on.

EURUSD price action is suggesting a corrective decline to 1.1250 mark before finding support again. Also note that the currency pair might be carving a classic inverted Head and Shoulder pattern.The Head is seen at 1.1120, Left Shoulder is between 1.1200 and 1.1250 and its Neck line is just taken around 1.1500.

If the above holds well, we should see a drop to 1.1250 as EURUSD carves its Right Shoulder. Once complete, we can expect resumption of the uptrend as prices prepare to target 1.1700 levels, which is next resistance on the daily chart. Potential remains for a push through 1.2000 and 1.2350 levels, going forward.

Trading plan:

Potential rally through 1.1700 against 1.1120.

Good luck!