FX.co ★ Trading plan for EURUSD on January 20, 2023

Technical outlook:

EURUSD rallied through the 1.0844 highs intraday on Friday before finding resistance. The single currency pair is seen to be trading just below 1.0830 at this point in writing and could slip below the 1.0770 interim support anytime soon. That would confirm that a meaningful top is in place at 1.0887 early this week and the bears are back in control going further.

EURUSD has risen in the past several weeks from the 0.9535 low through the 1.0887 high. In the process, the bulls have taken out a major resistance around 1.0786. This price action is indicative of the fact that the instrument should be preparing for a meaningful pullback towards at least 1.0370 and down to 1.0050 in the next few weeks.

EURUSD is still vulnerable to a bearish reversal from the resistance zone of 1.0800-1.0900 as marked on the daily chart. Immediate support is seen at 1.0481; while resistance is around 1.0900-10 respectively. A break below 1.0481 will add further confidence to the bearish proposed target of 1.0370, followed by 1.0050.

Trading idea:

Potential bearish move against 1.0950

Good luck!