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FX.co ★ Trading Plan for US Dollar Index for May 24, 2018

Trading Plan for US Dollar Index for May 24, 2018

Trading Plan for US Dollar Index for May 24, 2018

Technical outlook:

The Daily chart is presented here with potential wave counts in order to look forward. Please note that the US Dollar Index was pretty close to take out resistance at the 94.21 levels yesterday. The index has reversed from the 94.18 levels, and is seen to be trading at the 93.86 spot levels for now. The structure calls for a retracement lower towards at least the 92.30/50 levels, before attempting another push towards the 95.00 plus levels, which is the next resistance in line. Immediate price support is seen at the 92.30 levels, which may be the next higher low for rallying further. Looking into the wave counts, the US Dollar Index is seen to be either progressing into the wave (3) or it has already completed at 94.18 yesterday. In either cases, we expect a push lower as a flat/triangle wave 4 or wave (4), before the prices push forward towards the 95.00 levels.

Trading plan:

Aggressive traders go short with a stop above 94.18, and target at 92.30/50. Conservative traders, please remain flat for now and look for the buying opportunity again around the 92.30/50 levels.

Fundamental outlook:

GBP Carney and Dudley speaks at BOE Markets Forum in London at 03:00 AM EST.

Good luck!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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