FX.co ★ Trading plan for EURUSD for January 12, 2021

Technical outlook:

EURUSD had managed to print 1.2132 lows yesterday, before managing to find some support. The single currency pair is seen to be trading around 1.2145 levels at this point in writing and might print yet another low below 1.2125 today before producing a meaningful corrective rally.

The drop from 1.2349 seems to be complete to near to completion now and EURUSD bulls might be preparing for a corrective rally towards 1.2270 and 1.2300 levels soon. Immediate support is seen just below 1.2125, while resistance remains strong around 1.2349 levels respectively. Please note that intraday rallies remain possible from here, but prices should stay below 1.2349 to keep the bearish structure intact.

The overall wave structure is also indicating that the entire rally from 1.0636 might be complete at 1.2349 levels last week. Furthermore, bears have managed to almost take out 1.2125 support as well. Watch out for resistance around 1.2270/1.2300 zone for the next bear leg to resume towards 1.1600 levels.

Trading plan:

Remain short, stop @ 1.2450, target is 1.1600

Good luck!