Technical outlook and chart setups:
The US Dollar Index has printed yet another high at 99.11 levels yesterday, taking stops out before pulling back sharply. The index is trading at 98.51 levels for now, looking to drop lower further towards 97.60 levels at least as depicted here. (Since the chart was prepared a few hours back, partial effect is already seen). Please also note that 97.60 is immediate support and also the Fibonacci 0.382 support of the rally between 95.05 and 99.11 levels, as depicted here (wave iii). The wave structure indicates that the index has now completed 5 waves rally of a lesser degree from 95.05 levels. It is now expected to drop lower in a corrective manner (3 waves) towards at least 97.60 levels. Please note that the counter trend extension is also pointing towards 97.70 levels as depicted here. It is hence recommended to remain flat for now. Aggressive traders might want to again go short now, with stop at 99.30 targeting 97.60 levels. Immediate resistance is at 99.10 levels, while support is seen at 97.60 levels respectively.
Trading recommendations:
Remain flat for now. Aggressive traders might want to remain short, stop at 99.30, target 97.60
Good luck!
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