Technical outlook:
The EUR/USD pair seems to have completed 5 waves drop from 1.2090 levels as labeled here. It has either bottomed out at 1.1573 levels on Friday last or could print yet another low before confirming. If the above wave counts hold true, the next high probable move looks to be on the north side towards 1.1900 levels at least. Resistance should be strong at 1.2092 levels going forwards and prices should broadly remain below that point. The impulse drop could be still defined as wave (1), within 5 waves drop lower or as wave A, within a corrective A-B-C drop lower. In either case, a corrective rally should be due any moment and push prices higher towards 1.1900 levels, before pushing lower again.
Trading plan:
Aggressive traders may want to go long here with risk below 1.1500 with a target of 1.1900; while conservative players might want to remain flat and look to sell higher.
US Dollar Index chart setups:
Technical outlook:
The US Dollar Index looks to have either completed a 5 waves impulsive rally towards 95.10/20 levels or should be looking to push through yet another high to complete the same. If the labeled wave counts hold to be true, the next high probable trade setup for the US Dollar Index should be lower from here, towards 92.60/80 levels at least. The current impulse could be counted as wave (1) of a 5 waves rally or wave A within a 3 wave A-B-C correction. The US Dollar Index is not too far from an interim high and aggressive traders might want to prepare shorts here with risk around 96.00 levels. Support should be strong around the 91.00 mark and all corrective drops should remain well capped above that level going forward.
Trading plan:
Aggressive traders might want to sell here with risk around 96.00 levels, while conservative traders would want to remain flat and buy lower around 92.60/80,
Fundamental outlook:
Watch out for USD PCE core and German Consumer Price Index between 0830 AM EST and 0900 AM EST.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
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