FX.co ★ Trading plan for US Dollar Index for August 23, 2021

Technical outlook:

The US Dollar Index pushed higher around 93.72 levels on Friday before finding resistance. The index has reversed since then and carved an intraday low at 93.10 during this hour of writing. The index seems to have carved a meaningful bullish boundary between 89.50 and 93.72 levels in the past several weeks, which could be retraced.

The fibonacci 0.618 retracement of above rally is passing through 91.15 levels and high probability remains a drop the indice to reach there in the next few trading sessions. The entire corrective drop is expected to unfold into 3 waves and form an Up Gartley before turning bullish again. The index is seen t be trading around 93.15 levels at this point in writing and expected to stay below 93.72 going further.

Immediate resistance is fixed at 93.72 mark, while support comes in around 92.50, followed by 91.80 levels respectively. US Dollar Index is seen to be dragging lower towards 92.20 in the first wave, which is fibonacci 0.382 retracement of the above rally. Watch for for a drop until that point before producing a pullback.

Trading plan:

Potential short against 93.72, targeting 92.00 and 91.00

Good luck!