empty
 
 
20.04.2021 12:52 PM
Trading plan for US Dollar Index for April 20, 2021

This image is no longer relevant

Technical outlook:

The US Dollar Index has dropped through 90.85 levels today before finding support again. It is not shown here, but today's intraday low was close to the fibonacci 0.618 retracement of its recent rally between 89.70 and 93.43 levels respectively. The index has taken about 20 days time to produce the corrective drop and seems to be ready for the next leg higher.

The US Dollar Index is off its day's lows and is seen to be trading around 91.06 levels at this point in writing, as bulls prepare for the next rally. Also note that it is producing a Doji or Pinbar candlestick pattern on the daily chart indicating a potential trend reversal. Strong price support is seen at 89.70, followed by 89.20; while resistance is around 94.50/95.00 levels respectively.

Looking at the wave structure, the US Dollar Index might be preparing for the next largest rally extending towards 95.70 and up to 98.00 levels, going forward. For the above bullish structure to hold well, prices must ideally stay above 89.70 and subsequently 89.20 levels. A push above 91.80 would be considered constructive for bulls.

Trading plan:

Remain long, stop @ 89.20, target 95.00 and 98.00

Good luck!

Oscar Ton,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback