FX.co ★ Trading plan for EURUSD on September 30, 2022

Technical outlook:

EURUSD rose through 0.9853 during the early Asian session on Friday before finding resistance. The single currency pair has pulled off sharply since then and is seen to be trading close to 0.9765 at the time of writing.The bears are looking inclined to drag prices close to 0.9600 before giving in to the bulls again. The rally could resume thereafter and push the price through 1.0200 initial resistance.

EURUSD already produced a Morning Star bullish reversal pattern on the daily chart early this week after dropping to the 0.9535 lows. Prices followed through towards 0.9850-55 before pulling back. The potential for the counter-trend rally remains through 1.0365 and up to 1.0600 in the next several weeks. Also, note that 1.0600 is the Fibonacci 0.382 retracement of the early downswing between 1.2350 and 0.9535.

EURUSD has carved a lower-degree upswing between 0.9535 and 0.9650 as seen on the daily chart here. We can expect a pullback from here, dragging towards 0.9600 which is the Fibonacci 0.618 retracement of the above upswing. The next leg higher could resume thereafter pushing through the 1.0200 initial resistance at least.

Trading idea:

Potential rally through 1.0200 and higher against 0.9500

Good luck!