Trading Plan for EUR/USD and US Dollar Index for December 06, 2017

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Technical outlook:

The EUR/USD short-term story remains intact for now. The pair has found intraday support at fibonacci 0.382 levels as seen here, price being 1.1800. A slight probable change in the wave structure has been shown here as wave x, which could be a counter trend towards 1.1900 levels before turning lower again. As an alternate though, the entire drop from 1.1960 through 1.1800 levels could be considered as a flat as well, and in that case, a rally should unfold from here. In either case, a potential push higher, at least towards 1.1900, could be seen from current levels before the pair turns bearish again. A continued drop below 1.1800 levels should keep the interim bearish structure intact hence a safe way to trade for now would be to remain short or look to sell on rallies. Please note 1.1700 levels are still possible either from current levels or from 1.1900.

Trading plan:

Conservative strategy would be to remain short and also look to sell higher again around 1.1900 with risk above 1.1960. An aggressive way to trade would be to go long now, risk below 1.1790, target 1.1880/1.1900.

US Dollar Index chart setups:

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Technical outlook:

The US Dollar Index short-term outlook remains intact with bulls poised to push higher through 94.10 levels from here. There could be a slight pullback ahead of 92.60 levels, but the bullish outlook remains unchanged till prices remain broadly above 92.50 levels going forward. Please note that we are just looking for a counter-trend rally towards 94.10 levels which also coincides with Fibonacci 0.618 resistance of the drop between 95.10 through 92.60 levels respectively. But if prices do break above 94.10 levels, it could easily reach 95.00 and higher levels in the coming days.A simple and safe trading strategy from here would be to go long on dips till prices stay above 92.50 levels. A break below 92.50 levels could change the short term wave structure.

Trading plan:

Remain long for now and also look to buy on dips, stop below 92.50, the target is 94.20.

Fundamental outlook:

Watch out for Bank of Canada rate decision at 1000 AM EST.

Good luck!

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