Trading plan for EURUSD and US Dollar Index for October 23, 2017

analytics59edc8b98dc16.jpg

Technical outlook:

As seen on the hourly chart setup here, EUR/USD has been drifting sideways potentially into a triangle setup after having rallied from 1.1670 levels since October 06, 2017. The entire drop from 1.2092 through 1.1670 levels can be termed as A or 1, while we are expecting B or 2 to terminate somewhere above 1.1920 levels. In between these 2 points, a potential triangle setup has been shown. If this wave count holds to be true, a push can be expected on the north side towards at least 1.1920/30 levels. Please note that 1.1920/30 is also the fibonacci 0.618 resistance level of the entire drop between 1.2092 through 1.1670 levels respectively. The immediate price resistance is seen through 1.2030 levels, while the support lies at 1.1670 levels respectively.

Trading plan:

Aggressive traders might want to remain long with a risk below 1.1670 levels while conservative traders would want to remain flat for now and look to sell around 1.1920/30 levels.

US Dollar Index chart setups:

analytics59edccdb5d571.jpg

Technical outlook:

The US Dollar Index short-term view presented here indicates a simple flat wave count is underway as a correction. The entire rally between 91.00 and 94.20 levels has been labelled as A or 1, while an (a)-(b)-(c) correction has been shown under and probably into its last leg (c), which is expected to resume any moment. Wave B or 2 is expected to terminate around 92.00/20 levels as it is also a convergence of fibonacci 0.681 support of trend and counter trend depicted here. Immediate price support is seen between 91.00 and 91.40 levels while resistance stands at 94.20 levels respectively. If the above wave count holds to be true, the US Dollar Index should be looking to drop lower towards 92.20 before picking up again on the north side.

Trading plan:

Aggressive traders could remain short, with a risk above 94.20 levels and target 92.30, while conservative traders should be looking to remain flat for now and buy lower towards 92.20 levels.

Fundamental outlook:

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

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com