Technical outlook:
The EUR/USD pair has now completed its first leg drop that began from 1.0906 level on March 27, 2017. It is safe to believe that the pair has formed a commendable resistance at 1.0906 level and till the time the prices stay below 1.0906 level, the EUR/USD pair should be looking to print lower lows. Please note that the immediate support trend line stands to be broken and should now act as resistance. The back side of the support turned resistance trend line is falling around 1.0830/40 levels, as depicted on the hourly chart here. Also, it is seen to be converging with Fibonacci 0.618 resistance of the entire drop from 1.0906 through 1.0720 level. Please watch out for a counter trend rally to materialize in the next 24 to 48 hours from now to hit 1.0830/40 levels, before turning lower again. Furthermore, a potential head and shoulder reversal pattern is also building which is a strong sell at its Right Shoulder as shown above. It is good to remain flat for now and look to sell on rallies through 1.0840 level.
Trading plan:
Please remain flat for now and look to sell around 1.0830/40 levels, stop is at 1.0950, target 1.0600 and 1.0400 at least.
Gold chart setups:
Technical outlook:
Gold had hit the first target at $1,245 level today just a while back. The metal has pulled higher for now but is expected to drop lower towards $1,235 level at least in the coming hours or days. Partial profits could have been booked at $1,245 and the remaining can be taken at $1,235 level. Please note that the metal is still trading below its line of resistance as depicted here and till the time it trades in the sell zone, the bears are expected to remain in control. Looking at the wave structure, the metal has completed waves 1 and 2, while it looks to be into wave 3 which should terminate at $1,235 as labeled here. A bullish reversal from $1,235 would produce a counter trend rally or a reversal in trend. While a continued push below $1,235 level would open possibilities towards at least $1,220 level. Immediate resistance is seen at $1,254 level for now, while support is at $1,240 level respectively.
Trading plan:
Please remain short for now, stop is at $1,261, and target is at $1,235.00.
Fundamental outlook:
With USD and GBP data out a few hours back, the fundamental calendar is light for the rest of the day and also tomorrow. But overall USD strength is set to be back again and it should print higher highs across the board.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
No comments:
Post a Comment