Technical outlook:
Trading in the EUR/USD pair remained subdued after a weekend, but the structure still looks to be intact and favorable for bears. Please note that the pair had earlier dropped from 1.0906 to 1.0570 levels in 5 waves, labelled as wave 1, and subsequently rallied through 1.0680 into 3 waves, labelled as wave 2. Furthermore, the pair looks to have formed waves i and ii of lesser degree that could unfold into wave 3, going forward. If this wave count proves to be true, EUR/USD is likely to drop from its current levels towards 1.0350 and 1.0000. On the other side, the pair can also push through 1.0700 level and complete its corrective rally that begun from 1.0570 level earlier. Immediate resistance is seen at 1.0700, while support lies at 1.0520. Selling within intraday rallies is a safe trading strategy.
Trading plan:
Please remain short and look to sell through 1.0700/70 levels, stop at 1.0950, targeting 1.0350 and lower.
GBP/USD chart setups:
Technical outlook:
The GBP/USD pair has produced the triangle termination (wave E, not shown here) at 1.2615 levels. After that the pair produced a 5 waves drop at a lower degree to produce wave 1. Furthermore, GBP/USD has produced an expanded flat wave structure labelled as A-B-C (3-3-5 sub waves) above. The termination point of wave C can also be labelled as 2, and if the above-mentioned count holds true, the price will likely stay below 1.2575. On a broader sense, the pair should remain below 1.2615 level. Immediate resistance is at 1.2615, while support is seen at 1.2400. Please note that if the price stays below 1.2615 levels, the pair should be looking to push towards 1.2370 and lower.
Trading plan:
Please remain short from current levels (1.2540/50) with the stop placed at 1.2650, targeting 1.2350 and lower.
Fundamental outlook:
With no major fundamental news to be out today, volatility is likely to be low unless some geopolitical news escalates.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com