FX.co ★ Trading plan for EURUSD for July 21, 2021

Technical outlook:

EURUSD managed to print yet another shallow low towards 1.1751 today before pulling back. Please notice the square box placed on the chart where prices were expected to carve a bottom and reverse. High probability remains for a meaningful interim bottom to be in place today around 1.1751 levels. Getting prepared for a counter trend rally ahead.

EURUSD is seen to be trading around 1.1776 levels at this point in writing and is expected to push higher towards 1.1800 mark in immediate future. Immediate support is now placed at 1.1751, followed by 1.1700 while resistance comes in around 1.1825, followed by 1.1850/80 levels respectively. Please note that this is a counter trend rally and might be offering another opportunity to initiate fresh short positions.

EURUSD might be looking poised to push through 1.1975 in the next few trading sessions as pointed on the chart here. Also note that 1.1975 is a convergence of price resistance, fibonacci 0.382 retracement of the recent drop between 1.2266 an 1.1751 and the backside of trend line, which is now acting as resistance.

Trading plan:

Short term counter trend: Long now @ 1.1770/80, stop @ 1.1700, target @ 1.1975

Medium to long term towards larger trend: Remain short, sell more @ 1.1975/1.2000, stop @ 1.2250, target @ 1.1300.

Good luck!