US Dollar Index looking to terminate Wave 2 triangle @ 100.50/70
US Dollar Index still probing a lower top to terminate Wave 2. If it is a triangle, prices should likely stay below 100.87 and in case of a flat it could reach up to 101.20, which is fibonacci 0.618 retracement of Wave 1 on the chart here. Either way, we favor a bearish count until it stays below 103.00 handle. Immediate support is @ 99.00, followed by 98.70, and a break lower would trigger further selloff. It would be interesting to see how US Dollar Index reacts around the 100.87 handle. Structurally, the index had dropped earlier from 103.00 through 98.27 lows, Wave 1 on the chart. It has been consolidating since then, and we expect a lower top as Wave 2 termination between now and 101.20. If the above count holds, we could see Wave 3 lower towards 94.65 levels going forward.
Strategy:
Short against 103.00, targeting below 94.00.
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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 below 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.