23.03.2023 08:05 AM
Trading plan for US dollar index on March 23, 2023

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Technical outlook:

The US dollar index has extended its drop towards the 101.50-60 zone post-Fed Rate Decision on Wednesday. The index has dropped close to the Fibonacci 0.786 retracement of its previous rally between 101.50 and 105.50, which is passing through 101.54. Also, note that the Fibonacci 1.618 extension of its counter-trend is also seen around 101.54.

The US dollar index is expected to produce an electrifying bullish reversal from the above Fibonacci convergence at 101.54. Prices must stay above the 100.50 interim support to keep the bullish scenario intact. The Up Gartley of the rally between 101.50 and 105.50 seems close to completion as the bulls are looking poised to be back in control.

The US dollar index is structurally carving a larger-degree counter trend rally towards 106.50 and 109.00. The entire drop between 114.70 and 100.50 is being retraced and the instrument is soon expected to resume its last leg higher. A break above 104.70 resistance will confirm that the bulls are back in control and that the trend is now higher.

Trading idea:

A potential rally towards 106.00 against 100.50

Good luck!

Oscar Ton,
Analytical expert of InstaForex
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