Trading Plan for US Dollar Index for May 16, 2018

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Technical outlook:

The structure remains more or less unchanged except for a small intraday high yesterday at 93.45 levels, from what we discussed on May 14, 2018. The US Dollar Index might have completed its recent rally and is about to see a correction lower towards 91.80 levels at least as projected here. Please note that both fibonacci retracement levels (38.2%) and the Elliott channel support is coinciding around 91.80 levels either late today or tomorrow. So please do not be surprised to see a quick drop lower, terminating into wave 4 of a lesser degree, before proceeding/resuming its rally towards 95.00 levels going forward. A safe trading strategy from here is to look to buy on dips through 91.80 levels, though an aggressive counter trend trade can also be taken. The wave count also suggests that US Dollar Index is proceeding well into its wave (3) and should be looking to rally through 95.00 levels.

Trading plan:

Aggressive traders might want to sell with stop above 93.50 and target 91.80. Conservative traders might want to remain flat for now and look to buy again on dips.

Fundamental Outlook:

Watch out for ECB president Draghii's speech in Frankfurt at 0800 AM EST.

Good luck!

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