FX.co ★ Trading plan for EURUSD for August 20, 2020

Technical outlook:

EURUSD finally reversed from 1.1965 levels yesterday. The single currency pair is seen to be trading at around 1.1847 at this point in writing and should be looking to continue lower towards 1.1780 today or tomorrow. Also note that bears have managed to produce an Engulfing Bearish candlestick pattern on the daily chart, indicating potential reversal ahead. Furthermore, the reversal has occurred around fibonacci 0.618 retracement zone of the earlier drop between 1.2555 and 1.0636 respectively. Keeping all the above facts in mind, it would be safe to continue selling on rallies until prices stay below 1.1965 levels.

Trading plan:

Remain short @ 1.1850 and add further around 1.1900/20, stop above 1.1965 and target below 1.1200.

Good luck!