FX.co ★ Trading plan for EURUSD on January 18, 2023

Technical outlook:

EURUSD dropped below 1.0800 overnight and registered a fresh intraday low at 1.0766 during the Asian session on Wednesday. The single currency pair is seen to be trading close to 1.0770 at this point in writing as the bears are still poised to be in control. A meaningful top could be in place at 1.0874 as projected earlier.

EURUSD is about to carve either a Doji or Engulfing Bearish candlestick pattern on the weekly chart after having reversed from 1.0874. Traders might be preparing for a sharp bearish reversal over the next week with an initial target around 1.0370. That would break the immediate price support of 1.0481 seen on the daily chart here.

EURUSD is facing no intraday resistance around the 1.0820-30 area. Any pullback rallies should be met with resistance over there as the bears are regaining control. On the flip side, a consistent push above 1.0874 will test the price above 1.0900 before finding resistance again. Having said that, a high probability still remains for a drop lower with 1.0874 intact.

Trading idea:

Potential bearish reversal against 1.0950

Good luck!