FX.co ★ Trading plan for EURUSD for February 02, 2021

Technical outlook:

EURUSD might be still trying to complete the counter-trend rally by pushing higher towards 1.2230/40. The single currency pair is seen to be trading around the 1.2081 level at this point in writing after having turned lower from a high of 1.2350 on January 06, 2021. It might have carved a meaningful top and could be attempting a pullback before resuming lower again.

Immediate price resistance is fixed at the 1.2350 level, while intermediary support is just belowthe 1.2050 level respectively. The short term wave structure indicates a potential counter trend rally is underway and might terminate around 1.2230/40, which is Fibonacci 0.618 of the recent drop between 1.2350 and 1.2053 respectively (not shown here). Bears might be inclined to resume lower from there and push through 1.1600 major support in the next several weeks.

The entire rally that begun since March 2020 lows around 1.0636 might be complete at 1.2350 and the currency could drop towards Fibonacci 0.618 retracement which is seen around the 1.1200/300 mark.

Trading plan:

Remain short, add more @ 1.2230/40, stop @ 1.2350, target @ 1.1600 at least.

Good luck!