Technical outlook:
The EUR/USD daily chart view has been presented here, with the 5th wave being highlighted here. According to the wave count here, the underlying is into its 4th wave within the 5th wave of one higher degree. It remains to be seen where the 4th wave would like to terminate. The area of interest for it would be between the 1.2190 and 1.2230/40 levels respectively. Please note that the unfolding pattern could be a standard flat or a triangle, we shall come to know in a bit. The immediate price support comes in at the 1.2150/60 levels, while the resistance is seen at 1.2537. As depicted here, the channel support also comes around the 1.2200/20 handle for now. It would not be best to go aggressive shorts now, while one last leg rally still remains.
Trading plan:
Consider profits on earlier shorts and remain flat.
US Dollar Index chart setups:
Technical outlook:
The US Dollar Index daily chart has been presented here with the 5th wave being highlighted. To understand where the underlying is, a probable wave count has been plotted within the 5th wave. The US Dollar Index seems to be into its wave 4 corrective rally, within the 5th wave of one larger degree. Ideally, the estimated range to get terminated is between the 90.60 and 91.00 levels respectively. Also, the channel line resistance is seen to be passing through the same region. The immediate resistance is seen at 91.00, while the support is at 88.40 respectively. It is not recommended to go aggressively long around these times rather wait for the 5th wave to complete first.
Trading plan:
Consider taking profit on longs earlier and remain flat for now.
Fundamental outlook:
No major fundamental events lined up for the day.
Good luck!
