Technical outlook and chart setups:
The US Dollar Index has resumed its corrective drop after hitting 98.17 level earlier. The index is trading at 97.68 level for now, looking to drop lower further towards 97.00 level at least. Please also note that 96.94 is the fibonacci 0.382 support as depicted here. The waves structure indicates that the index has completed a 5-wave rally from 94.50 level. The current pullback would be considered as a retracement which is expected to terminate at 96.95 level. It is hence recommended to exit long positions and remain flat for now. Aggressive traders might want to go short now, with stop at 98.50 targeting 97.00 levels. Immediate resistance is at 98.13 level, while support is seen at 96.95 level respectively.
Trading recommendations:
Remain flat for now. Aggressive traders might want to remain short, stop is at 98.50, a target is at 97.00
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com