Technical outlook:
EUR/USD continues to find interim support to terminate wave (1) and begin its counter trend rally towards wave (2) as depicted on the 4H chart above. The pair lags behind its counterparts like GBP/USD and USD/JPY which are presumably into their respective wave (3) already. We shall bring those setups sometimes later this week but for now the wait continues to sell the termination of wave (2) here. The wave counts are indicating that a counter trend rally is overdue in EUR/USD, which should terminate between 1.0740 and 1.0800 levels, which are Fibonacci 0.382 and 0.618 resistance levels respectively. At the moment, the pair is testing an intermediate support trend line as seen on the chart above and can expect a corrective bounce here. Please note that momentum remains on the south side and intraday rallies should be sold here. Immediate support is seen at 1.0600 level, while resistance is strong at 1.0906 level respectively. Look lower till the prices remain below 1.0906 levels going forward.
Trading plan:
Please remain flat for now and look to sell between 1.0740 and 1.0800 levels respectively, stop is at 1.0906 and target 1.0350 and lower.
Gold chart setups:
Technical outlook:
Gold reverses from intraday highs at $1,261 level today. The structure is looking constructive for the bulls for sure but a corrective drop (potential expanded flat) seems to be in the making for now. If we look into the rally from $1,195 level and subsequent moves thereafter, the most likely wave count could be wave (1) and corrective waves A/B respectively. If the above wave count holds to be true, the metal should drop lower towards at least $1,225/20 levels as depicted here and complete the last leg wave C of correction. Please note that $1,225/20 are also good Fibonacci support levels, which can provide necessary bounce to the metal to push through higher levels from there. Please also note that a drop below $1,195 is looking less probable at this moment and hence short positions should be covered around $1,220/25 levels. Immediate swing support is seen at $1,227 levels, while resistance stays at $1,264.00 respectively.
Trading plan:
Please remain short for now, with stop at $1,263.50, target $1,225. Then look to go long.
Fundamental outlook:
With the second French Election Debate to begin around 02:30 PM EST, President Donald Trump to host Chinese President tomorrow, the NFP numbers on Friday and more, this week's calendar is full of events to produce required volatility and set the tone for the rest of April series.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
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