Technical outlook:
The story in EUR/USD continues as discussed earlier, to remain short and continue selling on intraday rallies. The wave structure remains broadly unchanged for now with wave 1 (sub-divided into 5 waves) ready and wave 2 terminated at 1.1980 last week. As an alternattive thought, wave 2 could spring an upsurge towards 1.1930/80 levels to find resistance and then reverse lower. Overall, bears are expected to remain in control till prices stay below 1.2070 levels, which is turning to be strong resistance with each day passing. Interim resistance is seen at 1.1980 levels while support is at 1.1820 levels respectively. It is highly suggested to exit counter trend longs now and continue holding and adding shorts from here on. On the flip side, only a break above 1.2070 levels would nullify a bearish setup.
Trading plan:
Please remain short and add on rallies through 1.1930/80, stop at 1.2085 and target 1.1600 and lower.
GBP/USD chart setups:
Technical outlook:
The GBP/USD pair is inching higher towards expected levels around 1.3050/70 levels for now. The entire setup has been discussed earlier and there is no change for now, except for the fact that more selling should be done at wave (2) termination as labelled here. Please note that fibonacci 0.618 resistance is seen at 1.3075 levels while wave A becomes equal to wave C at 1.3050 levels. Please note that resistance should be strong around this convergence zone and the pair is expected to turn lower again towards 1.2600 and 1.2300 levels. It is again humbly suggested to exit on counter-trend longs taken if any, aggressively and focus to hold short positions/add further on intraday rallies. The pair is seen to be moving exactly as per wave principle and is looking to terminate the 5-3 waves around 1.3050/70 levels. Please note that the next high probable wave count is expected towards the south side which should sub-divide into 5 waves.
Trading plan:
Please remain short and look to add further at 1.3050 levels, stop at 1.3270, targeting 1.26, 1.23 and lower.
Fundamental outlook:
Please note that there are no major events lined up for the rest of the day.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com