Technical outlook:
The EUR/USD pair finally looks set to drop lower into wave 3 of wave (3) as labelled here. The pair has taken time to produce a flat wave 2 around 1.1840/50 levels today. It is also converging with the fibonacci 0.618 resistance of the drop between 1.1950/60 and 1.1720 levels respectively (not shown here). If the above wave count holds true, then the most probable direction from here should be lower towards 1.1550 at least. Also prices should generally stay below 1.1950/60 levels going forward. On the flip side, a push through 1.1950 levels would indicate that the pair is setting up for another high above 1.2092 levels before giving in to bears.To simplify, we shall remain short till prices stay below 1.1960.
Trading plan:
Please remain short, stop at 1.1960 target 1.1550 and lower.
US Dollar Index chart setups:
Technical outlook:
The US Dollar Index is poised to rally through 94.00 levels any moment now. If we look at the wave structure, the index has formed a flat wave 2, within wave (3) of a higher degree. Also it has found support at a convergence of fibonacci 0.618 level of the rally between 92.60 and 94.20 levels, and past resistance turned support as well. If this wave count holds well, prices are expected to remain above 92.50 levels going forward and the most probable direction from here should be towards 95.00 and higher levels. Only a break below 92.50 now, would delay matters further and suggest another low below 91.00 levels before it turns bullish again.
Trading plan:
Please remain long now, stop below 92.50, target 95.00 and 98.00
Fundamental outlook:
GBP Carney speech in about 30 minutes from now.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
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