FX.co ★ Trading plan for EURUSD on September 16, 2022

Technical outlook:

EURUSD is still trading subdued below the 1.0000 handle for the last two trading sessions. The probability remains for the rally to continue towards 1.0400 and 1.0730 as projected on the daily chart. Only a drag below 0.9860 will confirm that bears are back in control and that prices are heading lower from here towards 0.9400-0.9500.

EURUSD has already carved a larger-degree downswing between 1.2350 and 0.9860 since January 2021. The above drop is being retraced since the 0.9860 lows and the pair is expected to reach at least 1.0800 going forward. Also, note that 1.0800 is the Fibonacci 0.382 retracement of the above drop, hence strong resistance should be seen there.

EURUSD has further carved a lower-degree upswing between 0.9860 and 1.0198 over the past few trading sessions. The same has been retraced just below the Fibonacci 0.618 mark (1.0000). A high probability remains for the trend to resume higher from here and push through 1.0800 in the next couple of weeks.

Trading plan:

Potential rally through 1.0800 against 0.9800

Good luck!