FX.co ★ Trading Plan for US Dollar Index for February 27, 2018

Technical outlook:

The US Dollar wave (5) drop has been highlighted and presented today with wave counts labeled. It is clear that while the (5)th wave is progressing lower, the index has already unfolded/sub divided into 4 waves, as labeled above. The index might have also completed its 5th of 5th wave drop at 88.25 levels earlier or it might print one more low before turning higher again. Also note that a continued rally from here and break above 90.50/60 levels would confirm that a meaningful low is already in place and that sequence of higher highs and higher lows would begin. On the other side, an alternate could be that the 5th wave could terminate below 88.25 levels before reversing. Whatever the case, we shall be watching closely and providing an update once the counts are confirmed. Immediate resistance is at 90.50/60 levels while support is at 87.00/88.00 levels respectively.

Trading plan:

Look for opportunities to buy at lower levels.

Fundamental outlook:

Watch out for German Consumer Price Index at 0800 AM EST followed by USD Durable Goods orders, Mr Powell's testimony at 0830 AM EST

Good luck!