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17.02.202113:08 Forex Analysis & Reviews: Trading plan for US Dollar Index for February 17, 2021

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Technical outlook:

US Dollar index end of the day chart has been presented here which is seen to be bouncing from backside of the resistance turned support trend line just below 90.00 levels yesterday. If successful, the index can stage an impressive rally towards 94.50 at least if not any further. The index is seen to be trading around 90.79 levels at this point in writing and is expected to drop one last time through 89.80 levels before resuming higher again.

Immediate resistance is fixed at 91.60 zone, while support is seen to be around 89.20 levels respectively. The overall structure is still indicating that a counter trend drop is still unfolding since 91.60 levels. The US Dollar Index is expected to drop through fibonacci 0.618 mark close to 89.80 levels before finding support again.

On the flip side, if bulls are successful to push above 91.60 highs, it would confirm a bottom in place and that bulls are here to stay for long. Either way, US Dollar Index remains good to buy on dips, until prices stay above 89.20 levels going further.

Trading plan:

Remain long, add more @ 89.80, stop @ 89.20, target is open.

Good luck!

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