FX.co ★ Trading plan for EURUSD on February 08, 2023

Technical outlook:

EURUSD dropped through the 1.0670 low during the early New York session on Tuesday before finding support. The single currency pair has pulled off the lows since then and is seen to be trading close to 1.0730 at this point in writing. The price action has produced a Doji on the daily chart with room still left on the south side towards the 1.0481 initial support.

EURUSD's drop from 1.1020 still looks corrective, so the instrument is unfolding its initial leg lower. Intraday pullbacks remain possible but prices should likely stay below the 1.1020 swing high. A larger-degree corrective decline could be underway towards 1.0500 and up to the 1.0100-20 area before the trend resumes higher again. The bears eyeing below 1.0481 in the near term to confirm a deeper correction.

EURUSD might target the Fibonacci 0.618 retracement of the rally between 0.9535 and 1.1020-25 which is seen passing through the 1.0100-20 range as projected on the daily chart. A high probability remains for a bullish turn if prices reach those levels. A potential Fibonacci convergence could be seen close to the 1.0100-20 mark, which will be displayed in the coming sessions.

Trading idea:

A potential bearish drop against 1.1025

Good luck!