FX.co ★ Trading plan for EURUSD for August 26, 2022

Technical outlook:

EURUSD has risen through 1.0015-20 on the intraday chart on Friday after a sideways movement over the past two trading sessions. The currency pair is seen to be trading close to 1.0010 level at this point of writing and is expected to push through at least the 1.0200 level, if not further. Bulls will be inclined to hold prices above 0.9901 interim support going forward.

EURUSD is facing immediate price resistance around the 1.0365 mark as seen on the daily chart here. Bulls might be targeting the same level in the near term and can be back in control at 0.9901. The next potential upside projections are the levels of 1.0800 and 1.0900, just above the fibonacci 0.382 retracement of the entire drop between 1.2350 and 0.9901.

EURUSD has produced a strong bullish divergence on the daily RSI as prices dropped to a new low around 0.9901 as seen on the daily chart here. This could be a potential turning point for bulls to come back in control and push through the initial resistance around 1.0364 and higher going forward. Prices must stay above 0.9901 for the bullish structure to hold.

Trading plan:

Potential rally towards 1.0360 against 0.9800

Good luck!