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

Technical outlook:

EURUSD dropped through fresh lows around 1.1009 mark in the early Asia Session on Friday. The single currency pair is trading around 1.1030 levels at this point in writing and is expected to produce a bullish turn anytime soon. Bulls will be inclined to push through 1.1500 mark in the near term and register themselves to be back in control.

EURUSD has produced three consecutive lows around 1.1186, 1.1131 and 1.1009 levels respectively in the past few weeks. It is worth noting that the daily RSI has not dropped through fresh lows, indicating a strong bullish divergence. If the above structure holds well, prices will hold above 1.1000 mark going forward.

Also note that the Fibonacci 0.786 retracement of the larger degree upswing between 1.0636 and 1.2350 is reached now. This is the last significant support for EURUSD bulls to regain control. Watch out for the end of the day chart pattern to confirm the expected bullish reversal to be confirmed. A break above 1.1130 from here will ease the downside pressure significantly.

Trading plan:

Potential rally through 1.1500 against 1.0900

Good luck!