Technical outlook:
The EUR/USD pair still seems to be looking to drop one last time before pulling back. It is expected to terminate through 1.1700 levels at least, which is the fibonacci 0.618 support as well. According to the wave counts 1.1700 could be labelled as wave C until the structure changes going forward. To simplify the view, until prices remain below 1.1940/50 levels, EUR/USD bears are expected to remain in control. A sustained break below 1.1700 levels would push through 1.1550 levels and lower. On the flip side a bullish reversal around 1.1700 would produce at least a meaningful pullback, if not an extended rally.
Trading plan:
Please remain short for now with a target of 1.1600/1.1700 levels.
US Dollar Index chart setups:
Technical outlook:
The US Dollar Index is looking poised to push through 94.10/20 levels, before producing a meaningful pullback. The wave structure still looks constructive for bulls and it would remain to be so till prices stay above 92.50 levels going forward. Please note that the corrective drop is also expected to find support around 93.40/50 mark before the bullish run continues. As labelled here, it the wave count holds true, the US Dollar Index is preparing to push through 95.00 and 98.00 levels in the weeks to come by. Whether you plan to trade short or medium term, looking to buy on dips is a safe strategy.
Trading plan:
Please remain long and also plan to buy on dips, target 92.20.
Fundamental outlook:
There are no major events lined up for the day.
Good luck!
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