Technical outlook:

The EUR/USD pair reacted well around 1.0860/70 resistance yesterday and the follow-through was exactly as expected. Now the pair has achieved its targets at 1.0750 level as suggested and it calls for a profit booking at this level as seen and depicted on the hourly chart setups. Please note that EUR/USD has now clearly broken below trend line support and has also taken out the price support as seen here. According to the wave structure, the pair is expected to produce a counter trend rally towards 1.0800 levels at least before resuming its drop. The counts suggest that the pair should print one more low at 1.0700 or 1.0650 levels to complete its 5 wave impulse from 1.0906 levels that began on May 27, 2017. Overall, the pair is good to be sold on intraday rallies from here and downside extensions are pointing towards 1.0700, 1.0600 and further in the coming days. Immediate resistance remains intact at 1.0906 level, while support is seen at 1.0700 level respectively.

Trading plan:

Please book profits on short positions taken yesterday and look to sell again through 1.0800 level with stop at 1.0935 and target 1.0700 and 1.0650 at least.

Gold chart setups:

Technical outlook:

Gold has printed lows at $1,247 level today in line with expectations before pulling back again. Please note that the rally looks to be corrective in nature and that the metal should resume its drop any moment now. Also note that the metal has broken its immediate line of support and is currently back testing it, which should provide enough resistance to push the prices lower again. Looking into the wave counts, the drop is still not complete and Gold should see lower levels towards $1,245 and $1,235 at least, going forward. Furthermore the metal has also tested the Fibonacci 0.618 resistance of the drop between $1,258/59 through $1,247 level as depicted on the hourly chart here. If this count holds true we should see the prices dropping lower from here and target support which is seen at $1,242/42 levels. It is still early to confirm that Gold might drop to $1,180 level before resuming its uptrend, but with USD strength beginning to show and the wave structure of Gold suggests an interim low towards $1,235 level at least. Immediate resistance is seen at $1,261 level, while support is at $1,241 level respectively.

Trading plan:

Please remain short for now, with stop above $1,261 level, targeting $1,245 and $1,235 at least.

Fundamental outlook:

As discussed yesterday, host of Fed person speeches are lined up in this week which should provide enough fodder to USD moving ahead in April. Our technical outlooks are seen to be falling in line with the USD fundamental strength seen now.

Good luck!