FX.co ★ Trading plan for EURUSD on September 02, 2022

Technical outlook:

EURUSD rose through the 1.0000 handle intraday on Friday, just ahead of the Non-Farm Payrolls. A high probability remains for a push through 1.0080 in the near term. The currency pair is expected to take out initial resistance at 1.0365. The bulls are looking poised to hold prices above the 0.9901 interim support to keep the structure intact.

EURUSD is now targeting the 1.0800-1.0900 area to produce a larger-degree corrective wave. Also, note that 1.0800 is the Fibonacci 0.382 retracement of the previous bearish swing between 1.2350 and 0.9901. A high probability remains for a bearish turn if prices manage to reach there. We expect the bears to be poised to come back in control thereafter.

EURUSD has also produced a bullish divergence on the daily RSI (not shown here today) as prices dropped through the 0.9901 lows earlier. The single currency pair might be preparing for a potential trend reversal in the near term if those critical levels hold. A push above 1.0080-90 will encourage a further rally towards 1.0365.

Trading plan:

Potential rally through 1.0365 against 0.9901.

Good luck!