Technical outlook and chart setups:
The US Dollar Index is seen to be carving out its wave 3 higher within 5 waves movement from November 09, 2016 lows as depicted here and there is not much change from what was discussed yesterday. The index dropped lower into wave (2) on December 08, 2016 and is carving wave (3) at this moment. Furthermore, please note that the index has carved out wave 4 terminations yesterday at 102.50 levels and bounced back higher into its potential wave 5 rally higher. The index is trading at 103.38 levels for now and if the above wave structure holds true, it must ideally remain above 101.50/60 levels. But please be aware that if the index drops below 102.50 levels and subsequently below 101.60, it would confirm that a meaningful top is in place at 103.50. It looks good to remain long around these levels, with a risk at breakeven levels. Immediate short term support is seen at 102.50 levels, while resistance is at 103.50 levels respectively.
Trading recommendations:
Long now, stop at breakeven levels, target 104.00 plus. Aggressive traders, please, book profit on long positions taken yesterday and prepare to go short.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2hDBrJI
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