US Dollar Index is preparing for intraday rally towards 100.00

US Dollar Index might be preparing for a push lower towards 94.65 and further as Wave 3 unfolds. High probability remains that Wave 2 terminated as a triangle around 100.56 on May 14, 2020. The index had earlier dropped from 103.00 through 98.27 levels, Wave 1 on the chart. If the above counts are correct, prices should stay below 100.56 going forward and continue drifting lower towards 94.00 as Wave 3 progresses. Looking at the short term structure, possibility remains for a counter trend rally towards 100.00, before resuming lower again. We would watch closely the 101.20 resistance if bulls manage to break above 100.56 handle. Overall, US Dollar Index remains under control of bears until 103.00 holds well.

Strategy:

Short against 103.00, targeting below 94.65.

Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.