Technical outlook and chart setups:
The US Dollar Index has print yet another high at 98.55 level yesterday before retracing lower. The index is trading at 98.47 level for now, looking to drop lower further towards 97.30 and 96.50 levels at least. Please also note that 97.30 is the fibonacci 0.382 support of the rally between 95.40 and 98.50 levels, as depicted here. The wave structure indicates that the index has completed a 5-wave rally from 95.40 level. It is now expected to drop lower in a corrective manner (3 waves) towards 96.50 level. It is hence recommended to exit long positions and remain flat for now. Aggressive traders might want to go short now, with stop at 98.70 targeting 97.30 level. Immediate resistance is at 98.60 level, while support is seen at 97.30 level respectively.
Trading recommendations:
Remain flat for now. Aggressive traders might want to remain short, stop at 98.70, a target is 97.30
Good luck!
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