23.02.202113:03 Forex Analysis & Reviews: Trading plan for EURUSD for February 23, 2021

Technical outlook:

EURUSD has managed to produce the expected pullback rally and managed to print weekly high at 1.2180 mark today. The single currency pair has pulled back and is seen to be trading around 1.2150 levels at this point in writing. EURO bulls might still have some steam left to push higher through 1.2200/20 levels at least, before finding resistance again.

Immediate resistance remains intact at 1.2350, while intermediary support is seen towards 1.2023, followed by 1.1950 levels respectively. Looking at the recent wave structure since 1.2350 highs, probability still remains for EURUSD to push through 1.2250, which is just above fibonacci 0.618 retracement of the drop between 1.2350 and 1.1950 respectively. (not shown here).

Furthermore, the entire rally from 1.0636 lows in March 2020 seems to have completed around 1.2350 in early January 2021. Bears might remain poised to take control back from 1.2200/30 resistance zone and drag prices lower towards 1.1600 ad 1.1200/300 over the next several weeks. Only a break above 1.2350 would delay matters further.

Trading plan:

Remain short, add more @ 1.2200/20, stop @ 1.2450, target is @ 1.1600

Good luck!