Trading plan for EURUSD for February 05, 2021

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Technical outlook:

EURUSD continues its decline and prints lows around 1.1957 early today. A possibility for a pullback rally does remain through the 1.2100/1.2200 levels before the peair starts dropping. The EUR/USD pair is seen to be trading around the 1.1966 level at this point in writing. It might be preparing for a retracement towards the 1.2100 level at least.

Immediate resistance is seen at 1.2190, followed by 1.2350; while support at 1.1900, followed by 1.1800 levels respectively. A drop below the 1.1900 level will also eliminate the possibility of rallying towards fresh highs above the 1.2350 level. The long-term wave structure also continues to remain bearish until prices stay below the 1.2350 level and the potential remains for a push through the 1.1200 level.

Also note that 1.1200 is passing close to the Fibonacci 0.618 retracement of the entire rally between 1.0636 (March 2020 lows) and 1.2350 (January 06, 2021 highs). Bears are poised to remain in control. The pair may develop a corrective rally back into the 1.2200 zone in the next few trading sessions.

Trading plan:

Remain short, add more around 1.2200/30 zone, stop @ 1.2350, target is @ 1.1600 at least.

Good luck!

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

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