US Dollar Index resistance is seen towards 99.90/100.00
US Dollar Index is retracing its recent drop between 100.56 and 99.00. The fibonacci 0.618 retracement is seen towards 99.98 and if prices manage to reach there, a bearish reaction can be expected. The US Dollar Index had dropped from 103.00 through 98.27 levels earlier, Wave 1 on the chart. A triangle consolidation structure unfolded as Wave 2 and terminated around 100.56 last week. Since then, Wave 3 seems to be underway towards 94.65 and further. Looking at the lower degree wave structure (not labelled here), Waves i and ii within Wave 3 might be complete at 99.00 and 99.87 respectively. If the above counts hold true, we are close to witnessing a sharp decline as Wave iii of 3 unfolds. The overall structure remains bearish against 103.00, going forward.
Strategy:
Short against 103.00, targeting 94.65 and further.
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 94.65 and further.
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.