Trading Plan for EUR/USD and US Dollar Index for October 09, 2017


Technical outlook:

The EUR/USD pair has been forming a series of lower highs and lower lows since forming a potential top at 1.2092 levels earlier. Looking at the current price action, a short-term hourly structure has been presented here for trade direction in the next 1-2 days. The pattern that is taking shape at the moment could be of an ending diagonal, which unfolds into 5 waves (labelled i through iv here) with each wave sub dividing into 3 waves. If the above wave count holds true, prices should ideally remain below 1.1786 levels and push lower through 1.1660 levels at least. Please also note that 1.1660 is also previous price support seen on the 4H chart view and that could be the next short-term target before bulls come back into play. Furthermore, please understand that any rallies after that should be corrective and taken as opportunities to go short again. Immediate price resistance is at 1.1786 while support is at 1.1660 levels respectively.

Trading plan:

Aggressive: Please remain short with stop above 1.1786 and target lower at 1.1660/70.

Conservative: Please look to go long at lower levels 1.1660/70, targeting 1.1830 and 1.1900/30.

US Dollar Index chart setups:


Technical outlook:

The US Dollar Index has been consistently forming higher highs and higher lows since printing lows at 91.00 levels back in September 2017. Besides, its uptrend channel support trend line remains well intact without breaking below any lows as well. Looking at the recent wave pattern, the US Dollar Index might be producing a potential ending diagonal structure and could be into its last leg rally, which could push through 94.50 levels. If this wave count holds to be true, the index would stay above 93.25 levels and look to push through its channel resistance line which is seen passing through 94.40/50 levels for now. On the flip side, a drop below 93.25 levels would indicate an intermediate top is in place and that prices should look to retrace lower. Immediate support is at 93.25 while resistance is seen at 94.40/50 levels respectively.

Trading plan:

Immediate short term, please remain long with risk below 93.25 and target 94.40/50

Medium term strategy would be to remain flat for now and look to sell higher at 94.40/50

Fundamental outlook:

No major events are lined up for the rest of the day.

Good luck!

The material has been provided by InstaForex Company -