Trading Plan for EUR/USD and US Dollar Index for November 16, 2017


Technical outlook:

The EUR/USD pair pulled back just a few pips shy from the fibonacci 0.618 resistance but might have triggered the lower range of short entries suggested. We are still presenting a case of waves (1) and (2) on the charts here suggesting that the pair should be heading lower into wave (3) going forward. Please also note that it could still push higher towards 1.1900 levels before terminating wave (2) as shown here. There are alternative scenarios possible which we shall discuss at the right time. Resistance is lined up at 1.1880/90 levels while support should be at the back side of the trend line being tested now. Watch out for 1.1725 levels providing initial price support if prices manage to reach there. A continued drop below 1.1670 levels would confirm that a meaningful top is in place and that the pair is heading south.

Trading plan:

Please take short-term profit on the sell positions taken yesterday and remain flat. Again look to sell around 1.1880/1.1900 levels.

US Dollar Index chart setups:


Technical outlook:

The US Dollar Index has found support around the 93.50 levels yesterday, which is also the fibonacci 0.382 support of the entire rally between 91.00 through 95.15 levels respectively. We are still presenting the highest probable wave counts as wave (1) and (2) being completed or as an alternative wave 4 got terminated yesterday around 93.40 and the 5th wave should push prices higher towards 95.30/50 levels respectively. In both the above cases, the US Dollar Index stands to raise its levels from here. Keeping this in mind, a safe trading strategy could be to remain long and also look to buy on dips further. As an alternative count, the index is seen to be testing the back side of its former support trendline and a bearish reversal here could push prices even lower towards 93.00 levels, which is also the next level of support.

Trading plan:

It is safe to book profits on long positions taken yesterday and remain flat. Also look to buy lower again around 93.00 levels.

Fundamental outlook:

Watch out for GBP BOE's Carney, Broadbent, Cunliffe, Place, Ramsden, Woods Speak at 0900 AM EST

Good luck!

The material has been provided by InstaForex Company -