23.02.202308:05 Forex Analysis & Reviews: Trading plan for EURUSD on February 22, 2023

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Technical outlook:

EURUSD dropped to the 1.0599 low during the late New York session on Wednesday before pulling back. The single currency is seen to be trading close to 1.0620 at this point in writing as the bulls prepare to unfold a counter-trend rally soon. The near-term resistance is seen around 1.0700 and a push higher will confirm a bottom in place at 1.0599.

EURUSD bears are looking inclined to drag the price lower toward 1.0500 from the current levels. A consistent break below 1.0600 will open the door to a drop further toward the 1.0480-1.0500 support as marked on the daily chart here. If the above scenario unfolds, the proposed counter-trend rally will be further delayed.

Either way, the larger-degree wave structure is indicating that EURUSD is heading lower towards 1.0100 in the next several trading weeks. Also, note that 1.0100 is the Fibonacci 0.618 retracement of the earlier rally between 0.9535 and 1.1025 respectively. If the drop unfolds as corrective, a high probability remains for a bullish reversal from 1.1025.

Trading idea:

A potential drop against 1.1025.

Good luck!

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