FX.co ★ Trading plan for EURUSD for February 18, 2022

Technical outlook:

EURUSD has been drifting sideways since last two trading sessions within 1.1340-1.1380 levels. It is expected to remain sideways today and resume lower towards 1.1250 mark over the next week. Bears might remain in control until prices stay below 1.1500 mark as gartley corrective structure is still unfolding.

EURUSD is working on its recent upswing between 1.1120 and 1.1500 levels. The Fibonacci 0.618 retracement is seen through 1.1250 while 0.786 comes around 1.1200 mark. Probability remains for a drop through the above levels to complete the corrective wave that has begun since 1.1500 highs. Bulls might be back in control thereafter.

EURUSD is also seen to be carving a conventional inverse Head and Shoulder pattern with Head around 1.1120, Left Shoulder around 1.1200-50 range, Neck line being taken out at 1.1500 and potential Right Shoulder being carved out now. If correct, bulls are setting up nicely for a rally coming March series.

Trading plan:

Potential drop through 1.1250 then rally toward 1.1700

Good luck!