Technical outlook:
The EUR/USD pair has continued to rise since discussed yesterday and has now taken out trend line resistance and also price resistance at 1.1788 levels as depicted here on short-term view. Still probable likelihood for a trade setup immediately is to drop lower around the fibonacci 0.50% support seen at 1.1740/50 levels and then rallying higher again. Please also note that the back side of the resistance turned support trend line is also seen passing through the same region now, which would provide required bounce. Please note that if this process takes time, then EUR/USD pair could also drop further lower towards 1.1700 levels before turning higher again. Immediate resistance is seen at 1.1830 levels, while support is seen through 1.1740 levels respectively. Dual trade setups are highlighted below, please trade according to risk management.
Trading plan:
Aggressive: Remain short with stop above 1.1807 levels targeting 1.1740 and 1.1710
Conservative: Look to go long around 1.1710/40, with stop below 1.1675 levels targeting 1.1900/20
US Dollar Index chart setups:
Technical outlook:
The US Dollar Index breaks support at 93.25 levels as it was discussed as an alternative probability yesterday. The index is now expected to produce a counter trend rally towards 93.75/85 levels, which is also fibonacci 0.50% resistance as depicted on the short-term chart setup here. Furthermore, please also note that the past support turned resistance trend line is also seen to be passing through 93.75 levels now, which should provide enough resistance. After this counter trend rally terminated into back side of trend line resistance, the pair is expected to drop lower towards 92.50/80 levels at least. A dual trade setup is discussed below, offering trades in both directions; please trade according to risk management.
Trading plan:
Aggressive: Please remain long now, stop below 93.25 and target 93.75/85
Conservative: Please remain flat for now and look to go short around 93.75/85, stop above 94.40 and targeting 92.50.
Fundamental outlook:
There is no important event risk lined up for the rest of the day.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com