US Dollar Index might have carved Wave 2 as flat a-b-c, at 100.87 levels on Friday. An engulfing bearish candlestick pattern was formed after hitting 100.87 and price action followed lower since then. It is trading around 99.90 levels at this point in writing, and we expect further drop to 99.60 as immediate short term target. The wave counts suggest that the US Dollar Index has carved Waves 1 and 2 around 98.30 and 100.87 respectively. Also note Wave 2 terminated just below fibonacci 0.618 retracement of Wave 1, seen at 101.20 levels. Wave 3 has been underway now and should be targeting lower towards 94.65 and further. Structurally, US Dollar Index is bearish until prices hold below 103.00.
Strategy:
Short against 103.00, targeting 94.00.
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, targeting 94.00.
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.