Trading plan for EUR/USD and Gold for April 05, 2017

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Technical outlook:

The EUR/USD pair finally looks to put up a counter trend rally with the prices pushing higher into resistance zone around 1.0690 level intraday. It still seems that there is more room left on the upside to materialize before the pair could reverse towards larger down trend. The wave counts are indicating that an impulse wave (1) is complete from 1.0906 through 1.0640 levels, while wave (2) is still under way, probably unfolding as an expanded flat, which could terminate into 1.0740 at least. Please note that this is minimum probability for wave (2) termination, with enough space until 1.0800 level as well. Immediate support is seen at recent swing lows at 1.0640 levels while strong resistance is seen at 1.0906 levels respectively. A safe trading strategy would be to sell on rallies through 1.0800 levels, targeting parity.

Trading plan:

Please look to sell between 1.0700 and 1.0800 levels, stop is at 1.0950, targeting 1.0300 and 1.0000.

Gold chart setups:

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Technical outlook:

Gold seems to be beginning to drift lower as discussed yesterday, after reversing sharply lower from $1,261 level. The metal seems to be producing an expanded flat structure, spread across a larger time span as seen labelled here as A and B respectively. Please note that each wave is seen sub divided into 3 waves and hence the next probable wave C is expected to unfold into 5 waves lower towards $1,225/26 levels. Also please note that immediate resistance is seen at $1,260 level, while support is at $1,227 level respectively. A break below $1,247 level would accelerate and increase probability to push through $1,225 level in the sessions to come. On the flip side, a break above $1,262 would indicate that the metal remains poised to push through new highs from here.

Trading plan:

Please remain short for now, with stop at $1,263.50, targeting $1,225.

Fundamental outlook:

Please watch out for USD ISM Services Composite at 10:00 AM EST, followed by FOMC Minutes for March at 02:00 PM EST today.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com

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