Trading plan for EURUSD for January 19, 2021

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Technical outlook:

EURUSD continued to decline yesterday by printing fresh intraday lows through the 1.2053 level before finding support. The EUR/USD pair is seen to be trading around the 1.2085 level at this point in writing. The pair is expected to produce a counter-trend rally towards the 1.2250/1.2300 zone in the next few trading sessions.

Immediate resistance is seen towards 1.2350 level, while support comes in around the 1.2050 level respectively. Ideally, prices are expected to stay well capped below the 1.2350 level and produce a bearish reversal again from the 1.2250/1.2300 levels respectively. The next wave of bearish movement might drop through the 1.1600 support, which was registered on November 04, 2020.

The overall wave structure since the 1.0636 low in March 2020 might be turning constructive for bears. EURUSD bears have managed to break below the 1.2058 support level and might be preparing for a corrective pullback. The Fibonacci 0.618 retracement is seen at 1.2250, which is expected to produce the necessary bearish turn for the next potential drop.

Trading plan:

Remain short for now, add more @ 1.2250/1.2300 zone, stop @ 1.2480, target @ 1.1600 at least.

Good luck!

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

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