empty
 
 
17.05.2022 07:10 AM
Trading plan for US dollar index on May 17, 2022

This image is no longer relevant

Technical outlook:

The US dollar index slipped to 103.94 in the early hours of the Asian session on Tuesday. The index is seen to be trading at around 104.10 at this point in writing and is expected to continue its decline through 102.30 at least in the near term. Also, note that bears have finally managed to carve an Evening Star candlestick pattern on the daily chart.

The US dollar index could be preparing to drop through initial support around 102.30 as bears are now looking to remain in control. The bottom line remains that prices should stay below the 104.88 mark to keep the structure intact. The high probability remains for a meaningful top in place and prices to drag below 102.30 and 99.65 in the near term.

Besides, note that the daily RSI has been producing a strong bearish divergence as shown here. This is a potential indicator for a trend reversal soon. A break below initial support at 102.30 will confirm the same. Until that happens, the US dollar index remains poised to reach a new high towards the 105.00-50 mark.

Trading plan:

Potential drop through 102.30, 99.65 and 97.65 against 105.50

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