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

Technical outlook:

EURUSD has been trading sideways since the last trading session post FOMC on Wednesday, between the 1.0135 and 1.0185 levels. The pair is seen to be trading close to the 1.0185 level at this point of writing and might oscillate until breaking higher above the 1.1100 mark. A possibility still remains that the price will drop through the 1.0100-1.0110 range before resuming its rally.

EURUSD has been carving a countertrend rally since the 0.9952 lows and is projected to push towards the 1.0800-1.0900 levels at least before finding resistance. If a major bottom is in place at the 0.9952 mark, bulls might be poised to push through the 1.1475 level as well, which is the Fibonacci 0.618 retracement of the entire drop between the 1.2350 and 0.9952 levels respectively.

EURUSD might still be working on the recent upswing between 0.9952 and 1.0365 as seen on the daily chart here. The 0.618 Fibonacci retracement is seen passing through the 1.0100-10 mark, which could be the next potential bullish turning point. Bottomline still remains at the interim support of 0.9952 for bulls to remain in control.

Trading plan:

Potential rally towards 1..0900 against 0.9950

Good luck!