Technical outlook:
The EURUSD pair still looks for termination of wave (1), before it could produce a counter trend rally towards 1.0700 levels at least. The intermediary trend line support has also been broken and prices trade in the sell zone right now. A simple trading strategy could be to sell on rallies. Please note that the Fibonacci 0.382 resistance is also around 1.0700 levels, along with the back side of trend line, which should act as formidable resistance. Please note that immediate support is seen at 1.0500 levels while resistance is at 1.0906 levels. The short-term resistance is at 1.0690 levels though. We are still waiting for a counter trend rally, and it is good to remain flat with patience to be able to sell through 1.0700 and 1.0770 levels. On the other side, a break below 1.0570 levels would take off 1.0500 levels easily.
Trading plan:
Please remain flat for now and look to short at 1.0700 levels. Also add at 1.0770 levels with stop at 1.0950, targeting 1.0300 levels at least.
Gold chart setups:
Technical outlook:
Gold has now produced a classic reversal pattern on Friday after printing highs at $1,270 levels. The trade plan has worked out well and still those who are looking to sell should do around $1,260 levels again. Please note that the metal has now produced a 5 wave drop (impulse) from $1,270 levels as seen here. The metal has produced wave (1) or an alternate count wave (A) (not labelled here). A corrective 3 waves rally is expected from current levels towards $1,260/61 levels, which is the Fibonacci 0.618 resistance as depicted here. A bearish reversal from there should push prices lower towards at least $1,220 levels and if breaks lower, it could drop until $1,180 levels. Immediate resistance is now seen at $1,270 levels, while support is at $1,240/44 levels.
Trading plan:
Please remain short with stop above $1,270 levels targeting $1,220 at least.
Fundamental outlook:
With no major news coming out for the day, please watch out for Fed Chair Yellen's speech at 04:00 PM EST today. It could trigger the much-awaited volatility and counter trends.
Good luck!
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