The EUR/USD pair is still running into consolidation before terminating the last leg/s of its rally that began in January 2017. The structure presented above is exciting because it shows we are very close to forming a major top and reversal in EUR/USD, maybe a few hours or days ahead. Overall, the wave count suggests that a triangle structure is unfolding and is probable into its last leg as well. The pair is currently expected to drop lower into 1.1900 levels, terminating into wave e, before rallying over to a new high into 1.2150 region. Quite multiple trade strategies are seen to be unfolding for the short term but the bigger picture remains selling on rallies. Immediate support is seen at 1.1820 levels and resistance is at 1.2092 levels respectively.
Remain short with stop around 1.2100 and target 1.1900/20 levels, then turn long with stop at 1.1800 levels targeting 1.2100/50.
Prepare to go short around 1.2150 levels, stop 1.2300 and target is open.
GBP/USD chart setups:
There is a slight change between GBP/USD and EUR/USD setups at this point in time, but the overall opportunity is the same and this is to sell on rallies. The GBP/USD pair has either formed a top at 1.3619 or would form another one a bit higher before giving in to bears in a big way. For an overall wave structure, we are closing in on a larger degree wave (4), not shown here, which can reverse the trend and push prices lower towards 1.2000. It is still early to speculate whether the larger trend has already reversed, since immediate support at 1.3130 level is still intact and short-term trend lines have also not broken yet. A short-term trading outlook should be on the sell side with targets towards 1.3350 levels. If the drop continues below 1.3130 levels, it would confirm and indicate that a major top is already in place. The overall strategy would remain selling on rallies.
Remain short between 1.3550/50, stop above 1.3750 (to remain safely away from potential rally), targeting 1.2000. This is a multiple weeks trading strategy.
Please watch out for FOMC minutes and USD Fed rate decision to be out today at 02:00 PM EST.