Technical outlook:
The EUR/USD spiked through mid 1.2500 levels before pulling back sharply last week. Once again the pair has proved it's not yet done on the north side. A complete wave count has been displayed on the daily chart here which indicates that EURUSD might have completed the 5th wave or would do so at 1.2650/70 levels before giving in to bears in a big way. At this moment, the pair is looking to form a triangle structure and is consolidating after rallying last week in a very quick manner. Normally, triangle structure precede the final thrust wave so please watch out for the same before looking to enter short side again. Resistance should be strong around 1.2650 levels and a strong probability of a bearish reversal there. Aggressive traders may want to remain short already.
Trading plan:
Prepare to sell again around 1.2550/1.2600 levels.
US Dollar Index chart setups:
Technical outlook:
The US Dollar Index might be finally completing its impulse drop at a higher degree, which began in January 2017. It might be still away from the last leg drop as depicted here in the channel view and it remains to be seen if the bottom is formed around the channel support. The daily chart presented here carries in details, the wave counts since January 2017 and it is more or less clear that the index is very close to completing 5th of 5th wave lower or it might have already done. At present, the index is consolidating its drop for last week within a potential triangle structure, before the final thrust lower. Normally triangle structures precede the final leg before a major trend reversal can occur. Please wait for one more potential low before going long again, while aggressive traders would want to initiate longs for risk below last week lows.
Trading plan:
Prepare to go long again around 88.50 levels again. Aggressive traders might already want to remain long.
Fundamental outlook:
USD PCE Core today at 0830 AM EST
Good luck!