28.03.201713:13 Forex Analysis & Reviews: Trading plan for EUR/USD and gold for March 28, 2017

Technical outlook:

The EUR/USD pair had pipped our trades off yesterday at 1.0875 levels before hitting fresh highs at 1.0906 and reversing lower. The drop has stalled at 1.0840/45 levels for now and the pair is expected to push through intraday resistance at 1.0883 levels as depicted here. A bearish reversal at those levels would turn the pair lower again and push through 1.0750 level that acts as the first meaningful support. On the flip side, the pair could produce another intraday high at 1.09/08/10 levels before reversing lower again. With both probabilities equally spread, the wave structure has not been depicted here, but watch out at 1.0883 levels for intraday selling. On the daily chart though, the overall bearish setup remains unchanged and the pair is expected to inch lower towards parity levels after hitting meaningful lower highs expected this week. Immediate resistance is at 1.0906 levels while support lies at 1.0750 levels.

Trading plan:

Look for selling opportunities around 1.0880/85 levels with stop placed at 1.1000 and target at 1.0700 or 1.0600 at least.

Gold chart setups:

Technical outlook:

The metal had pushed higher through $1,260 levels yesterday before pulling back again. This could be the beginning of a meaningful pullback or reversal towards $1219/20 levels at least or $1,180 as well. The intraday resistance is seen at $1,257.30 levels, which should provide a bearish bounce since it is also Fibonacci 0.618 levels. The metal has still not broken below the support trend line as depicted here, but it should be a matter of time before it does so. On smaller timeframes, the drop from $1,260 levels looks to be impulse (5 waves) so a reversal cannot be ruled out. On the flip side, a break above yesterday's highs would bring the pair to $1,264 levels. Please watch out for a bearish reaction at $1,257 today to initiate short positions again. The downside targets could be $1,235 and $1,219. Immediate resistance is seen at $1,264 levels while support lies at $1,242.00 levels.

Trading plan:

Please look to sell again around $1,257 levels with stop at $1,264/65, targeting at least $1,220.

Fundamental outlook:

The US report on goods trade balance is expected at 08:30 AM EST which should cause high volatility today. It is followed by Consumer Confidence index that is due to be released at 10:00 AM EST. Besides, a number of Fed official will deliver speech this week which also will influence the dollar exchange rate. We shall keep you updated on that each day of the week.

Good luck!