Technical outlook and chart setups:
The US Dollar Index has rallied past 98.00 level yesterday before retracing lower. The index seems to be in a steady uptrend from 94.00/95.00 levels as depicted here. The trend line supports remain intact and higher highs and higher lows are being printed. Looking at the immediate wave structure, the index seems to be preparing for a pullback/retracement lower towards 97.00 levels or more. It seems that the indice has completed wave 3 within the 5-wave rally expected from 94.50. A pullback is due in the form of wave 4, towards at least 96.95 levels as depicted here, which is the fibonacci 0.382 support of the rally between 94.50 through 98.13 levels respectively. It is hence recommended to exit long positions and remain flat for now. Aggressive traders might want to go short now, with stop at 98.50 targeting 97.00 levels. Immediate resistance is at 98.13 levels, while support is seen at 96.95 levels respectively.
Trading recommendations:
Remain flat for now. Aggressive traders might want to go short, stop at 98.50, target is at 97.00
Good luck!
