US Dollar Index is still looking to carve a lower high around 100.50/60 as Wave 2 termination. In case of a triangle unfolding, prices are expected to remain below 100.87 handle. Alternately, if US Dollar Index manages to reach 101.20, it could still be considered a corrective flat for Wave 2. Please also note that 101.20 is fibonacci 0.618 retracement of earlier drop between 103.00 and 98.27 respectively. Hence probabilities remain high for a bearish reversal towards 94.65 and lower. If prices continue to slide below 99.00 and 98.70 from here, it confirm a meaningful top in place at 100.40/50 handle. Believe it or not, a breakout would be sharp whenever it happens and we favor a bearish break towards 94.00 levels. Resistance stands at 103.00 handle.
Strategy:
Short against 103.00
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Strategy:
Short against 103.00
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.