Trading plan for EUR/USD and GBP/USD for April 19, 2017
April 19, 2017 1:42 pm
Technical outlook:
The EUR/USD pair has rallied up to Fibonacci 0.50% of the entire drop from 1.0906 through 1.0569 levels till now. Besides, it is converging with the back side of the support turned resistance trend line as depicted here on the 4H chart. The wave structure reveals that the initial drop and subsequent rally can be defined as waves 1 and 2 respectively. Note that a rally through 1.0770/80 levels is also possible before the pair turns lower again towards its major downwards trend. It is just a matter of time that a lower top is carved out by the above-mentioned tool and the down trend resumes. Immediate resistance is seen at 1.0906 levels, while support lies at 1.0500.
Trading plan:
Please remain short for now, with stop placed at 1.0950, targeting 1.0350 and lower levels.
GBP/USD chart setups:
Technical outlook:
The GBP/USD pair stopped out at 1.2710 levels yesterday and is printing fresh highs at 1.2905 levels as seen here. The bearish structure remains intact with the corrective/consolidation phase looking to be into its last phase. Please note that the pair is seen to be testing fibonacci 0.618 resistance of the entire drop from 1.3400 through 1.1950 levels as presented on the 4H time frame here. According to the wave structure, either a top is already formed or it is expected to print another high towards 1.3100 levels before reversing lower again. Selling on rallies is still a favored trading strategy but you’d better remain flat for now and allow for a potential top before entering again.
Trading plan:
Please remain flat for now, looking to sell again around 1.3000 levels.
Fundamental outlook:
As for GBP/USD, the UK snap election were declared yesterday, triggering a rally in the pound exchange rate, but it should be short-lived. No major fundamental news is expected to be out for the rest of the session.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Technical outlook:
The EUR/USD pair has rallied up to Fibonacci 0.50% of the entire drop from 1.0906 through 1.0569 levels till now. Besides, it is converging with the back side of the support turned resistance trend line as depicted here on the 4H chart. The wave structure reveals that the initial drop and subsequent rally can be defined as waves 1 and 2 respectively. Note that a rally through 1.0770/80 levels is also possible before the pair turns lower again towards its major downwards trend. It is just a matter of time that a lower top is carved out by the above-mentioned tool and the down trend resumes. Immediate resistance is seen at 1.0906 levels, while support lies at 1.0500.
Trading plan:
Please remain short for now, with stop placed at 1.0950, targeting 1.0350 and lower levels.
GBP/USD chart setups:
Technical outlook:
The GBP/USD pair stopped out at 1.2710 levels yesterday and is printing fresh highs at 1.2905 levels as seen here. The bearish structure remains intact with the corrective/consolidation phase looking to be into its last phase. Please note that the pair is seen to be testing fibonacci 0.618 resistance of the entire drop from 1.3400 through 1.1950 levels as presented on the 4H time frame here. According to the wave structure, either a top is already formed or it is expected to print another high towards 1.3100 levels before reversing lower again. Selling on rallies is still a favored trading strategy but you’d better remain flat for now and allow for a potential top before entering again.
Trading plan:
Please remain flat for now, looking to sell again around 1.3000 levels.
Fundamental outlook:
As for GBP/USD, the UK snap election were declared yesterday, triggering a rally in the pound exchange rate, but it should be short-lived. No major fundamental news is expected to be out for the rest of the session.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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