FX.co ★ Trading plan for EURUSD on September 20, 2022

Technical outlook:

EURUSD rose through 1.0050 intraday on Tuesday before pulling back. The single currency pair is seen to be trading close to the 1.0020 mark at this point in writing and is projected to resume higher towards 1.0450 and the 1.0750-1.0800 area in the near term. A drop below the 0.9950 potential support will drag prices lower to test 0.9860.

EURUSD is carving lower-degree waves within a narrow range between 0.9950 and 1.0040-50 for a few trading sessions. A fundamental catalyst will be released tomorrow before prices break out toward the direction of trade. A consistent push above the 1.0050-60 mark will accelerate a climb towards 1.0750 to complete the counter-trend rally.

EURUSD might have already carved a lower-degree upswing between 0.9860 and 1.0198 as discussed earlier. Furthermore, the above move has been retraced close to the 0.9940-50 area which is the Fibonacci 0.786 level. A high probability remains for a bullish reversal towards 1.0750 at least, until prices stay above the 0.9860 interim support.

Trading plan:

Potential rally towards 1.0750 against 0.9800

Good luck!