08.01.202008:38 Forex Analysis & Reviews: Trading plan for EUR/USD for January 08, 2020

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Technical outlook:

EUR/USD is in a corrective phase since printing fresh highs at 1.1240 on December 31, 2019. The projected targets for above correction is towards 1.1017 as highlighted here. Please note that prices are converging around 1.1017; the fibonacci 1.618 extension of corrective drop and fibonacci 0.618 retracement of earlier rally between 1.0879 through 1.1240 respectively. A bullish bounce there remains higher probability. Looking at the overall structure, bulls are expected to remain in control until prices stay above 1.0879 levels. Also note that in case of a further correction, EUR/USD may reach up to 1.0940 levels before turning bullish again. In either case, I expect a short-term bearish move towards 1.1017 or 1.0940 levels before the uptrend could resume further. As discussed earlier, the upside projections remain towards 1.1500 and 1.1800 for now.

Trading plan:

Aggressive traders may sell with stop above 1.1210, target 1.1017

Conservative traders may remain flat for now and look to go long at 1.1017, stop at 1.0879 target is 1.1500 at least.

Good luck!

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