Technical outlook:
The EUR/USD pair might be into its last leg of consolidation after forming a high at 1.0951 on April 26, 2017. The pair has completed 5 waves from lows of 1.0580 through highs of 1.0951 respectively, terminating into wave (2) at a larger degree as depicted here. EUR/USD has produced wave 1 of a lower degree and is consolidating into a sideways wave 2 of the same degree at the moment. If the above wave count is true, wave 2 has just terminated at 1.0941 level and the pair should continue lower towards 1.0580 from here. Until prices remain below 1.0950/51 levels, the above wave structure should hold true and bears are expected to resume control any moment. Immediate resistance is seen at 1.0951 levels, while support is just below 1.0580 levels respectively.
Trading plan:
Please remain short with stop above 1.0950 levels, targeting lower.
GBP/USD chart setups:
Technical outlook:
The GBP/USD pair has responded well to projected resistance levels around 1.2960/70 earlier and since then has dropped lower completing at least waves 1 and 2 as labelled here. Earlier, the pair was seen sub-dividing into 5 waves from the lows at 1.2365 levels through highs at 1.2965 levels respectively, terminating into potential wave (4) of a higher degree. If the above wave count comes to be true, the GBP/USD pair should continue dropping lower unfolding into waves 3, 4 and 5 of the same degree producing intermediate wave 1 within the projected 5 waves drop from 1.2951 levels. We shall bring up detailed wave counts as it unfolds further. Immediate resistance is seen at 1.2951 levels while support is seen at 1.2750 levels respectively.
Trading plan:
Please remain flat for now, stop above 1.2965, targeting lower.
Fundamental outlook:
Today's economic calendar is rather loaded with events. Please watch out for huge volatility with US Non-farm payrolls to be released around 08:30 AM EST followed by speeches of FOMC officials a few hours later. USD should be setting up to gain with these events as well.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com