empty
 
 
02.12.2022 11:37 AM
Trading plan for US dollar index on December 02, 2022

This image is no longer relevant

Technical outlook:

The US dollar index dropped through the 104.02 lows intraday on Friday, hitting our projected target at 104.30 earlier. The index has pulled back since then and is seen to be trading close to 104.20 at this point in writing. A push through the 104.53 immediate resistance will confirm that a meaningful bottom is in place and that the bulls are back in control.

The US dollar index has taken out strong support at 104.30 as marked on the 4H chart here. A high probability remains for a bullish reversal from current levels at least towards the 109.00-110.00 zone. If the larger-degree corrective wave is complete from 114.65, the bulls will be back in control soon and resume higher towards fresh highs in the next several weeks.

The US dollar index is facing strong resistance around 107.00 and it needs to be taken out to confirm a potential trend reversal. The three-wave decline from 114.65 through 104.00 looks complete now and a high probability remains for yet another rally above 114.65. Also, note the bullish divergence on the RSI, which is a strong indication of a potential reversal.

Trading idea:

Potential rally against 103.00

Good luck!

Oscar Ton,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback