Technical outlook:
The EUR/USD pair is seen to be testing the trend line resistance as shown here on the hourly chart. A successful break here, would push prices higher towards 1.0700 levels which is fibonacci 0.382 resistance of the entire drop from 1.0906 levels. On the other hand, a bearish reaction at the trend line would warrant a drop towards lower levels from here. According to the wave counts, a small 3-wave corrective rally can be seen to be developing, which could be labelled as wave (2), or it could push through the 1.0700 levels as shown here. Immediate price resistance is seen at 1.0690 levels, while support is at 1.0570 level respectively. The strategy remains to sell on rallies or at the current levels. Please note that the pair can also retrace the entire drop from 1.0906 levels and reach 1.0775 levels before reversing lower again.
Trading plan:
Please sell partially at 1.0610/20, 1.0700 and 1.0775 levels, stop at 1.0950 and target 1.0300 at least.
Gold chart outlook:
Technical outlook:
Gold is setting up nicely for a corrective drop towards $1,235 levels at least or an extended drop towards $1,180 levels. Please note that the drop from $1,270 levels through $1,245 was into 5 waves which can be labelled as wave 1. The subsequent rally is an a-b-c correction which is testing $1,261/62 levels at this moment. The termination point can be labelled as wave 2. Till prices remain below $1,270 levels broadly, the metal is expected to push lower below $1,245 levels easily. Please note that the drop can also be labelled as A as an alternate wave count which is not shown here. Similarly, wave 2 can also be labelled as B as an alternate. In any case, a drop lower is expected at least towards $1,230/35 levels if not lower. Furthermore, a push below $1,230 could open doors for $1,220 and also $1,180, which we shall discuss later.
Trading plan:
Please remain short for now, stop at $1,273./74, target $1,230.
Fundamental outlook:
There is no significant data to be out for the rest of the day.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com