Technical analysis for US Dollar Index for October 31, 2018

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Technical outlook:

The 4H chart has been displayed here for medium-term outlook on US Dollar Index. The index jumped to fresh intraday highs yesterday just a few pips above 97.00 levels. At this point in time, it could still be addressed as a test of previous swing resistance at 97.00 levels. But at the same time please be aware that prices must drop lower from here towards initial support seen at 96.30 levels and also break below its immediate trend line support, to keep the medium-term bearish outlook intact. Any sustainable push through 97.00 levels could cancel our bearish view at least for the short term. At the moment, traders should remain cautiously bearish or stay away from the trade till a clear direction is seen. Bottom line, we need to see a break below 96.30 levels and broadly below 96.00 to confirm a meaningful top at 97.00/05.

Trading plan:

Aggressively short, with stop above 97.30, target is open.

Good luck!

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