19.04.202307:58 Forex Analysis & Reviews: Trading plan for US dollar index on April 19, 2023

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.

ure

Technical outlook:

The US dollar index marginally dropped through 101.20 on Monday before turning higher again. The index is seen to be trading around 101.43 at this point in writing as the bulls are preparing to rally towards 102.50 and further in the near term. The likelihood remains for an intraday drop towards the 100.80-90 area before finally resuming higher.

The US dollar index had earlier dropped between 114.70 and 100.50 levels carving a meaningful larger-degree downswing (not seen on the chart). The index is now unfolding a complex corrective structure and is projected to rally towards 105.50 at least to complete the pattern. For the above bullish structure to hold well, prices must stay above 100.34.

The US dollar index has further carved a lower-degree upswing between 100.34 and 101.61 in the past two trading sessions. Prices are now retracing the above rally and could find support around 100.90 which is the Fibonacci 0.618 retracement of the above. Watch out for a sharp rally thereafter, pushing prices towards 102.50 and 103.70 levels respectively.

Trading idea:

A potential rally against 100.

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.