FX.co ★ Trading plan for EURUSD on February 21, 2023

Technical outlook:

EURUSD rallied through the 1.0704 high intraday on Monday before pulling back. The single currency is seen to be trading around 1.0665 at this point in writing as the bears continue retracing lower. Intraday support is seen through the 1.0650-60 zone, and we can expect the bulls to be back in control. Prices could push higher through 1.0750 and up to 1.0850 in the near term.

EURUSD is broadly unfolding a larger-degree corrective drop towards 1.0500 and down to 1.0100 as projected on the daily chart. Within the larger-degree drop, prices are setting up for a counter-trend rally towards 1.0750 at least. The bears are expected to be back in control thereafter and drag lower towards 1.0500 and 1.0100 respectively.

EURUSD is facing strong resistance at the 1.1025 high while interim support is seen around 1.0600, followed by 1.0481 levels respectively. Ideally, the price should stay below 1.1025 and continue lower towards 1.0500 in the near term. Watch out for a short-term rally towards 1.0750 and possibly up to 1.0850 before the bears are back.

Trading idea:

Potential bearish move towards 1.0500 and down to 1.0100

Good luck!