Trading plan for USDX for October 23, 2020

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Technical outlook:

The US dollar Index might have carved a low around 92.48 level yesterday. The index had dropped through Fibonacci 0.618 retracement of the earlier rally between 91.75 and 94.75 levels respectively before reversing higher again. The end of the day chart has been presented here while spot is seen to be trading around 92.92 level at this point in writing. Immediate support is seen through 91.75 level, while resistance is intact around 94.75 respectively. A push through 94.75 would confirm that a meaningful bottom is in place around 92.47 and that bulls are back in control. They are poised to push through 96.00 and 98.00 levels over the next several weeks. Also note that 98.00 is close to the Fibonacci 0.618 retracement of the earlier drop between 103.00 and 91.75. Bulls are in control until 91.75 lows remain intact.

Trading plan:

Remain long, stop @ 91.75, target @ 96.00 and 98.00.

Good luck!

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