FX.co ★ Technical analysis of the US dollar index for December 19, 2016

Technical outlook and chart setups:

The US dollar index is seen to be carving out its higher wave 3 within 5 waves movement from the lows set on November 9 as depicted here. The index dropped lower to the wave 2 on December 8 and is carving wave 3 at this moment. Furthermore, the index has completed the wave 4 today at 102.50 levels and bounced higher into its potential wave 5 rally. The index is trading at 102.89 levels for now and if the above wave structure holds true, the price is likely to remain above 101.50/60 levels. It looks good to keep long positions around there levels with a risk at 101.50 levels. Immediate short-term support is seen at 102.50 levels, while resistance lies at 103.50.

Trading recommendations:

Stay long for now with the stop at 101.50, targeting 104.00.

Good luck!