Technical outlook:
EUR/USD has followed our projected trajectory on May 08, 2017. The pair has dropped lower and looks to be completing an impulse already as labelled here. The pair has broken the support at 1.0875 and is looking to break the next support at 1.0850 levels before pulling back in a corrective manner. The wave count suggests that 5 waves are either completed or would be completed around 1.0850 levels, which would then terminate wave 1 of a higher degree as shown here. If this wave count holds true, a corrective rally (3 waves) should then resume and the potential move could be up to 1.0950/80 levels. Please note that the counter-trend rally should terminate below 1.1022 levels for the bearish structure to remain intact. Resistance lies at 1.1022 levels, while the support is seen at 1.0850 levels for now.
Trading plan:
Please remain short and continue to sell on rallies through 1.0950 levels with stop above 1.1022 levels and target at 1.0600 and lower.
GBP/USD chart setups:
Technical outlook:
GBP/USD has tested today's high at 1.2987 levels before pulling back sharply. The pair trades at 1.2945 levels at the moment and should continue dropping lower. As to the wave counts, the highs at 1.2988 levels could be the termination of wave C of the corrective rally A-B-C labelled above, that began in October 2016. At a higher degree, the termination could be that wave (4) and wave (5) should be on the way lower towards 1.1900. Once the pair pushes below 1.2800 levels, it would be more interesting to watch acceleration lower. On the flip side, only a push above 1.2988 levels would delay matters further for a bearish reversal to resume. The strong resistance is found at 1.2988 levels while support is now seen at 1.2830 levels.
Trading plan:
Please remain short now, with stop above 1.2988 levels. The target is open.
Fundamental outlook:
With Mr Draghi's speech over a few hours back, there are no other major events for the above-described pairs. Watch out for the central cank of New Zealand decision around 05:00 pm EST.
Good luck!
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