Trading plan for EURUSD for January 13, 2021

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Technical outlook:

EURUSD seems to have resumed its pullback/counter-trend rally as expected after hitting 1.2132 lows yesterday. The single currency pair is seen to be trading around 1.2209 levels at this point in writing and is expected to push through 1.2270 levels in the next 1-2 trading sessions.

Immediate resistance is fixed at 1.2349; while interim support is seen towards 1.2130 levels respectively. Also note that 1.2270 level is fibonacci 0.618 retracement of the recent drop between 1.2349 and 1.2132 respectively (not shown here). The larger wave counts are also indicating that the uptrend since March 2020 lows at 1.0636, might be complete around 1.2349 levels over the last week.

Furthermore, drop from 1.2349 through 1.2132 might be seen as the first bearish leg towards 1.1600 levels in the next few weeks. Bears might be inclined to remain in control from here, bottom line is 1.2349 should stay intact.

Trading plan:

Remain short, add more @ 1.2270, stop @ 1.2400, target @ 1.1600.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com