Technical outlook:
The US Dollar Index might be looking to carve one small high above 95.50 levels in the next 2 days to come before reversing sharply lower. Looking at the recent wave structure, the index might be forming an ending diagonal, which is most probably into its 5th wave as depicted here on the 4H chart. Also seen is the sharp bounce at the line of support indicating that 5th wave is on its way higher. Till prices stay above 94.10 levels, a bull is expected to remain in control and print one more high close to 96.00 levels. A sharp drop can be expected thereafter, which could bring prices lower towards 93.00 levels at least. On the other side, a break below 93.70 levels would indicate that the pair has topped out at 95.50 levels and is likely to continue lower.
Trading plan:
Aggressive long now, stop at 94.00, target 96.00/10. Then reverse.
Fundamental outlook:
Watch out for US GDP figures at 0830 AM EST.
Good luck!
