FX.co ★ Trading plan for EURUSD for February 16, 2022

Technical outlook:

EURUSD found potential support around 1.1280 on Tuesday, just ahead of the Fibonacci 0.618 retracement seen around 1.1260. The single currency pair has carved an Engulfing Bullish candlestick pattern on the daily chart indicating a potential trend reversal ahead. Probability remains that EURO bulls might be back in control from here and resume rally.

EURUSD might be unfolding an inverted Head and Shoulder pattern as seen on the chart here. The Head is at 1.1120, Left Shoulder around 1.1220-50, Neck line was taken out at 1.1500 and potential Right Shoulder might be in place at 1,1280. If the above holds well, prices would stay above 1.1120 and rally towards 1.1700 and 1.2000 levels going forward.

EURUSD's overall wave structure presents a bullish outlook as it has already found support around fibonacci 0.618 retracement of the earlier upswing between 1.0636 and 1.2350 levels as seen on the chart. Also note that prices reversed from a past resistance turned support area around 1.1120 mark. Watch out for a push through 1.1500 foe acceleration higher.

Trading plan:

Potential rally through 1.1700 and 1.2000 against 1.1100

Good luck!