FX.co ★ Technical Analysis of the US Dollar Index for October 27, 2016.

Technical outlook and chart setups:

The US Dollar Index has finally dropped lower as expected and discussed earlier and begun its counter trend printing interim lows at 98.33 level before pulling back. The index is trading at 98.71 level for now, looking to drop lower further towards 97.60 level at least as depicted here. Besides, the fibonacci extensions are pointing towards 97.70 levels, falling in line with expectations. Please also note that 97.60 is immediate support and also the fibonacci 0.382 support of the rally between 95.05 and 99.11 levels, not seen in this view. The wave structure indicates that the index has now completed a 5-wave rally of a lesser degree from 95.05 level. It is now expected to drop lower in a corrective manner (3 waves) towards at least 97.60 level. It is hence recommended to remain flat for now. Aggressive traders might want remain short now, with stop at 99.30 targeting 97.60 level. Immediate resistance is at 99.10 level, while support is seen at 97.60 level respectively.

Trading recommendations:

Remain flat for now. Aggressive traders please remain short, stop is at 99.30, a target is 97.60

Good luck!