FX.co ★ Trading Plan for US Dollar Index for July 24, 2018

Technical outlook:

The US Dollar Index had produced a meaningful drop last week and followed up yesterday towards fresh lows at the 94.20 levels, before pulling back higher again. Please note that the recent lows at 94.20 have taken out immediate support as seen here. It could be safe to assume that the drop from 95.50 through the 94.20 levels could be the first leg lower and that the index would continue dropping lower after a small pullback was over. The current counter trend or pullback rally is most likely to push through the 95.10 levels, which is Fibonacci 0.618 resistance of the previous drop from 95.50 through the 94.20 levels, respectively. Going further, we can expect the US Dollar Index to drop towards the 92.00 levels if not more.

Trading plan:

Initiate fresh short positions from the 95.00/10 levels, stop above 95.50 and target towards 92.00 at least.

Fundamental outlook:

There are no major events lined up for the day.

Good luck!