Technical outlook:
The EUR/USD pair is still looking to form a top and reversal it seems. The pair is into its 5th wave of the same degree that began in January 2017, and we expect the same to terminate around 1.2600/20 levels if not higher. View the educational wave counts video version on my channel. The current wave count suggests that EURUSD may either produce an expanded flat as wave 4 termination before rallying into its 5th wave or it is already unfolding its 5th wave and maybe just one leg away from terminating the same. Price support is seen at 1.2205 levels for now while interim resistance is at 1.2550 levels. Intraday resistance can be seen at 1.2450/1.2500 levels. A safe trading strategy would be to look for opportunities to sell at higher levels.
Trading plan:
Aggressive traders remain short and also look to sell around 1.2600 levels.
US Dollar Index chart setups:
Technical outlook:
The US Dollar Index is also looking to terminate into its 5th of 5th wave or might have already done that. A fresh low was print at 88.25 levels on Friday last before the index rallied more than 100 points above 89.20 levels. A break above 90.50/60 levels would certainly confirm that a meaningful bottom is in place and that the index is looking to produce higher highs and higher lows going forward. Price resistance is seen at 90.50 while interim support is seen at 88.25 levels respectively. Looking at the bigger picture, it is not advisable to go short for a potential final wave before turning long; in fact looking for opportunities to go long on dips would certainly be termed as a favorable strategy.
Trading plan:
Aggressive traders look to remain long and buy more around 88.60 levels.
Fundamental outlook:
Watch out for BOE's Carney speech in London at 12:45 EST.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
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