19.10.201606:03 Forex Analysis & Reviews: US Dollar Index Technical Analysis for October 19, 2016.

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Technical outlook and chart setups:

The US Dollar Index dropped towards 97.60 levels yesterday before pulling back. The index is trading at 97.80 for now, looking to drop lower further towards 97.00/96.95 levels at least. Please also note that 96.94 is the fibonacci 0.382 support of the rally between 95.00 and 98.20 levels, as depicted here. The wave structure indicates that the index has completed 5-wave rally from 95.00 levels. The current pullback would be considered as a retracement which is expected to terminate at 96.95 (wave 4 of a larger degree). 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 levels, while support is seen at 96.95 levels respectively.

Trading recommendations:

Remain flat for now. Aggressive traders might want to remain short, stop at 98.50, target 97.00

Good luck!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.