Technical outlook:
The US Dollar Index seems to be poised to print higher highs and higher lows going forward. The entire rally between 88.25 through 90.90 levels has taken out the initial resistance at 90.50/60 and hence it can be labeled as wave 1 as shown here. The subsequent drop has been corrective in nature and has found support from the fibonacci 0.50 levels as seen here. The termination of low formed around 89.40 levels can be labelled as wave 2 or it could form lower low around 89.20 levels, which is the fibonacci 0.618 support. In either cases, the index should be fetched on the long side, keeping in mind the bigger picture. Interim support is seen around 88.25 levels, while resistance is at 92.50 levels for now.
Trading plan:
Please remain long and also look to buy further on dips. Risk remains below 88.25 levels.
Fundamental outlook:
There are no fundamental events lined up for the day.
Good luck!
